Magna to acquire Opel

**rickaren** · #1 (**permalink**) 06-01-2009, 10:26 AM

Deal sets up Magna to acquire Opel

Posted Monday, Jun 1, 2009, 11:12 am in Employee News

Two German states yesterday agreed to support a $2.11-billion bridge loan for General Motors Corp.’s Opel unit, putting the final touches on a deal with Canada’s Magna International Inc. to acquire the automaker, Associated Press reported.

Under the deal, pushed through to protect Opel before GM’s likely bankruptcy filing on Monday, Magna will take a 20 percent stake in Opel and the Russian-owned Sberbank will take a 35 percent stake, giving their consortium a majority, the AP said. GM will retain a 35 percent holding, while the remaining 10 percent will go to Opel employees, the news service said.

The German government and four state governments where Opel has operations have now pledged to provide a $2.11-billion bridge loan for the deal, part of which will be available immediately, the AP said. Following agreement on the plan, the governors of Thuringia and Rhineland-Palatinate immediately approved their respective shares of $73.31-million and $140.98 million, the story said. (Associated Press/Detroit Free Press)

**rickaren** · #2 (**permalink**) 06-03-2009, 09:42 AM

Magna says it can’t sell Opel cars in U.S., China

Posted Wednesday, Jun 3, 2009, 11:36 am in Employee News

Magna International Inc. is prevented by an agreement with General Motors Corp. from selling Opel cars in the United States and, for now, in China, the chairman of the Canadian auto parts company told Reuters.

“Keep in mind that we’ve been working together with General Motors for 50 years. We’ve been great partners, and they still own 35 percent (of Opel),” Magna chairman Frank Stronach said in the story. He suggested the prohibition on Opel sales in China might be flexible. “If it makes economic sense, you might persuade people to change something.”

Stronach also said he expects Opel to break even in three years and to turn a profit in four, the news service reported. Now that Magna has agreed to take on Opel, Stronach displayed little appetite for buying Saturn and Saab from GM, which is trying to unload those brands, the story said. (Reuters/Automotive News)