Europe authorizes the PSA Group and GM to close on the sale of Opel

When we heard that General Motors has demonstrated Opel, to sell it to PSA Group seemed to us that we are living a déjà vu. The reason of this feeling is about the situation that lived the German firm when its parent company was on the brink of bankruptcy and at the same time was in negotiations with Magna Steyr to sell it. However, on this occasion, the story seems to be that it had ended well, and the signature of the lightning could have continuity in the market under a new family.

Everything is almost tied on the part of those responsible and heads in both groups, but we couldn’t forget a thing. Opel is German and the PSA Group is French. For those who don’t know, the European Union, through the European Commission, sailing for companies that want to merge (through sale or acquisition) will not jeopardize the rules of the free economic game. This is nothing more than to see that the PSA Group, once integrated into Opel in its portfolio of firms, can not take advantage of consumers europeans using the dominant position.

Since the transaction was announced in the past month of march, the leaders of the European Commission have been studying the limits of agreement. According to the documentation provided and the data that we know, with this strategic move the PSA Group will become the second manufacturer on the european level and the first from Spain. it appears, however, that the scope of this status, the rules of the game remain as they were until now.

in Addition, with the acquisition of Opel, the PSA Group will also be in charge of its financial arm. GM Financial Europe will be absorbed by BNP Paribas Personal Finnace and Banque PSA Finance (owned in a 50 percent by Banco Santander). All in all, the sale of Opel (and Vauxhall, not to forget it) is beginning to emerge as one of the most important operations in the automotive sector from more than a decade ago.

As stated by Patrice Lucas, Director of Programs and Strategy of the PSA Group

“we have reached an important milestone” […] “our teams are now focused on the achievement of the remaining closing conditions of the transaction, expected before the end of the year,”

good insurance the closure of the operation is performed sooner than expected, as counting with the blessing of the European Union, things will be moving for sure.

Source – European Commission

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