Opel-PSA deal entering finishing straight

Andrew Cummings
March 4, 2017

The board of Peugeot-Citroen parent PSA on Friday approved a deal to purchase Opel/Vauxhall from General Motors, Thomson Reuters has reported.

The announcement could still be delayed by last-minute snags but is likely to be made in France, says the person, who didn't want to be identified because the deal hasn't been formally announced.

"Things are advancing as they should", said one source close to PSA.

THE Holden Commodore could be in French hands by as early as Monday, with media reports saying a PSA Group takeover of GM's European division, Opel, is about to be confirmed.

The first models jointly developed under their five year-old partnership will be on display at the Geneva show, which opens to the press on Tuesday.

Another sticking point had been over GM's demands that Opel under PSA be banned from competing against Chevrolet in China, and in other overseas markets.

Sales volume is critical in Europe's largely saturated mass-market segment, and adding GM's roughly 1.2 million in annual deliveries in the region would help PSA spread the cost of developing new cars and engines across a larger number of vehicles. Furthermore, French sources have claimed that the acquisition of Opel can offer the group savings of up to €2 billion (around $2.1 billion).

PSA is optimistic that acquiring Opel will save the company about $2.1 billion.

"We've done a lot to improve the business but we're exploring opportunities to see if we can accelerate that even more because scale does matter in this business", Barra told reporters.

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