PSA Group finalizes agreement to buy GM’s European brands including Opel/Vauxhall
Peugeot-Citroen has reached an agreement with General Motors to buy its European unit, including the Vauxhall and Opel operations, BBC news reports. PSA Group, the owner of Peugeot-Citroen, would, after the agreement, become Europe’s second largest carmaker, behind Volkswagen but overtaking Renault-Nissan. The transaction is valued at EUR 2.2 bn, according to Bloomberg, and PSA will pay EUR 1.3 bn for “Ruesselsheim, Germany-based Opel and its U.K. nameplate Vauxhall, with the rest for the financing unit, which is being evenly split with BNP Paribas SA,” adding that “the combination of the two automakers is expected to generate annual savings of EUR 1.7 bn euros by 2026, through combining development, sharing investment in factories and purchasing. Implementing the savings measures will cost about EUR 1.6 bn.”
The move will have no bearing on Mansour Group’s status as distributor for Opel in Egypt, a top General Motors Egypt official tells Al Mal.