PARIS: PSA Group has agreed to buy Opel from General Motors in a deal valuing the business at 2.2 billion euros (US$2.3bil), creating a new regional car giant to challenge market leader Volkswagen. By acquiring Opel, the French group leapfrogs rival Renault to become Europe’s second-ranked carmaker by sales, with a 16% market share to VW’s 24%. Last year, PSA and GM Europe recorded 72 billion euros in revenue and 4.3 million vehicle deliveries between them. GM will receive 1.32 billion euros for the Opel manufacturing business – 650 million euros in cash and 670 million in PSA share warrants. GM will also take an accounting charge of US$4bil to US$4.5bil in relation to the deal, expected to close in late 2017.

Source: The Star March 06, 2017 22:35 UTC