PSA Group to buy Opel from General Motors
The deal creates a new regional car giant to challenge market leader Volkswagen, with the maker of Peugeot cars vowing to return Opel and Vauxhall to profit
Paris/Frankfurt — PSA Group has agreed to buy Opel from General Motors in a deal valuing the business at €2.2bn, creating a new regional car giant to challenge market leader Volkswagen. The maker of Peugeot and Citroen cars vowed to return Opel and its British Vauxhall brand to profit, with an operating margin of 2% within three years and 6% by 2026 underpinned by with €1.7bn in joint cost savings. "We’re confident that the Opel-Vauxhall turnaround will significantly accelerate with our support," PSA CEO Carlos Tavares said in a statement issued by the two car makers on Monday. By acquiring Opel, the French group leapfrogs rival Renault to become Europe’s second-ranked car maker by sales, with a 16% market share to VW’s 24%. In 2016, PSA and GM Europe recorded €72bn in revenue and 4.3-million vehicle deliveries between them. GM will receive €1.32bn for the Opel manufacturing business — €650m in cash and €670m in PSA share warrants. The Paris-based car maker and BNP Paribas will pay ...
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