Magna sends final offer to GM for Opel

Canadian car parts-maker Magna International Corp. has sent a revised offer with a contract to GM today hoping for a deal to finally go through for GM’s Opel division.

Magna spokesperson Daniel Witzani said today that all term issues were resolved between Magna and its Russian-based partner Sberbank, and said that the next step is for GM to make a decision.

Magna is offering GM about EUR $500 million for a 55-percent stake in Opel, with 35% retained to GM and with the remaining 10-percent to remain with Opel employees.

 As part of the deal, Sberbank is seeking some intellectual property rights from Chevrolet in Russia in order to help expand Russia’s slumping auto sector. GM remained opposed to this, but it is unclear if these issues have been resolved just yet.

The Magna offer still requires approval from the GM board.

Approval from the German Chancellor Angela Merkel is also required, as the German government remains committed to providing an investment of EUR $1.5 billion to Opel in bridge money financing.

Chancellor Merkel has already publicly announced her support for Magna, mainly because as part of the deal 1,800 jobs would remain in Germany, and Opel would continue to be operated independently.

GM is also considering a rival offer from RHJ International.

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Peggy holds a Bachelor Arts degree with honors in Economics from York University in Toronto, Canada. She is a Certified Management Accountant (CMA). She has also passed Level I of the Chartered Financial Analyst (CFA) Program. She is also a realtor. Write to [email protected]
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