General Motors’ sale of Opel-Vauxhaul to Peugeot could be confirmed as early as Monday. The supervisory board of PSA, which includes Peugeot and Citroen, will meet Monday to approve the sale, French political sources told Handelsblatt, confirming an earlier report by news agency Reuters.
The deal should have originally been completed by later Friday but the negotiating partners reportedly weren’t able to finish in time. Monday is now a certainty.
The French government owns about 14 percent of PSA and is represented in the carmaker’s supervisory board. Sources in Opel’s supervisory board also confirmed that Monday would be the key day for the merger deal.
The negotiations have been extremely complex, turning not just on financial questions like the price of the purchase but also on the pension benefits of employees at Opel and Vauxhaul, the British subsidiary of Opel. PSA and GM also need to reach a deal on the conditions for PSA to take over the rights to GM patents that are used in Opel models.
PSA chief Carlos Tavares and GM Chief Executive Mary Barra have also been negotiating where exactly the cars can be sold. GM has long barred Opel from selling outside of Europe, but Peugeot is hoping to make a push in the near future into the U.S. market. Whether Opel can sell in Asia – where GM also has a strong presence – has also been up for negotiation.
Thomas Hanke is Handelsblatt’s correspondent in Paris. To contact the author: firstname.lastname@example.org
Read the full story in Monday’s edition.