NEGOTIATIONS UNDER WAY
PSA Group makes first move in acquiring GM’s European business
London/Mumbai — PSA Group, the maker of Peugeot and Citroen cars, is exploring an acquisition of General Motors’ (GM’s) European business, say people familiar with the matter, in a deal that would transform the region’s automotive landscape. The French car maker is in talks to acquire Opel and UK sister brand Vauxhall from GM and an agreement could be reached in the coming weeks, said the people, who asked not to be identified because discussions are private. Negotiations could still fall apart, they said. A combination would create a manufacturer with about 16% of the European car market, leapfrogging Renault to become the region’s second-biggest car group after Volkswagen. A deal would also be the second run at linking the two mass-market car makers. GM sold a 7% stake in its French counterpart in 2013 after savings from a cooperation fell short of expectations.
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