GM’s Opel sale to Magna delayed until November
European Union regulators have set a November 27 deadline to examine whether Canadian auto parts maker Magna I...
October 26, 2009 by Canadian Plastics
European Union regulators have set a November 27 deadline to examine whether Canadian auto parts maker Magna International Inc.’s proposed takeover of General Motors Co.’s European unit Adam Opel GmbH could cause competition problems.
Aurora, Ont.-based Magna and Russian lender Sberbank were chosen last month as the favoured buyers for a majority stake in Opel and Vauxhall, over a bid from Brussels-based private equity firm RHJ International.
Critics charge that the German government openly favoured the Magna-led consortium to buy the troubled carmaker, which is a major employer in the country. Opel and sister brand Vauxhall have some 49,000 workers in Europe – about half of them in Germany.
GM’s board of directors is scheduled to meet November 3 to discuss the situation, and might potentially allow GM to choose other options, such as keeping Opel or selling it to another bidder.