Tuesday, October 27, 2009
GM sale deal delayed until November
The sale General Motors' Vauxhall/Opel European operations will not be concluded until next month.
In the last couple of weeks there has been an almost daily expectation that the preliminary documents leading to a sale of a 55% stake in the businesses to Magna International were about to be signed.
However, GM vice president John Smith, who is the manufacturer's lead negotiator on the sale, has now said that the signing of the deal will take place on November 3 at the earliest. That is the same day as a GM board meeting.
The delay to the agreement is being caused by the European Commission threatening to block the state aid Magna needs and opposition from European governments to the planned restructuring of Opel.
Meanwhile, Spanish trade unions have reached an agreement with Magna on planned jobs cuts at the Opel plant near Zaragoza, clearing one more hurdle to take its takeover of General Motors' European operations.
Germany and the UK are also reported to be close to agreeing terms of the deal's 4.5 billion euros financing.
DATED: 27.10.09
FEED: AW
