BAIC Granted Access to Opel's Accounts

Just when everybody thought that the deal is finally over and Magna has managed to take over the German unit Opel, officials close to the matter stepped in and said the American parent company is also negotiating with some other interested parties. And things are getting worse for the Canadian - Austrian manufacturer as Chinese investor BAIC, also known as Beijing Automotive Industry Corp, was granted access to Opel's accounts.

According to a report by drive.com.au, a Chinese delegation comprising several BAIC officials will visit Germany to discuss the interest in Opel in the next two weeks. Additionally, the Beijing manufacturer is seeking support from employees, trade unions and politicians that could help the Chinese buyer take over the German brand.

Meanwhile, negotiations with Magna continue, with the GM and the Canadian - Austrian part manufacturer setting a deadline of July 15 to get the final signing for the deal.

"There was an agreement that Magna and GM on July 15 should be far enough in their negotiations that they can reach a conclusion that serves as the basis for a contract," Autonews cited a source close to the matter.

Furthermore, Magna said it expects to close the deal by September, with all those involved likely to give their approval by that month. "We think that we will be finished in the next four, five weeks and then there's the final signing," Magna co-Chief Executive Siegfried Wolf said. "After the signing, all approvals have to be given, and I think that we can expect a closing in September, end-September."

Under the terms of the deal, Magna and its Russian partner Sberbank would take control of a 55 percent of Opel, while 35 percent will still belong to General Motors Europe. The remaining 10 percent will go to Opel's employees.