John Smith, GM group vice president corporate planning and alliances (and GM’s chief negotiator for the sale of a stake in Opel/Vauxhall), said in a statement that the European Union has been reviewing the takeover deal since the US-based parent manufacturer agreed with Magna's proposal.
"Since the Trust Board approval was given, the European Union has been reviewing the Opel investor process and the circumstances surrounding the selection of Magna/Sberbank. Such a review is usual and customary when extensive government financial support is involved," he said.
"Last week, the Directorate-General for Competition expressed concerns about possible limitations on the availability of government financing for all Opel bidders, and how that may have influenced the selection process. The German Government was asked by DG Competition to communicate its position on financing availability to GM and the Opel Trust Board who, in turn, were requested to consider the recommended bidder for Opel accordingly."
Until GM reconsiders Magna's bid, the involved parties continue working with labor unions across Europe who have already expressed their disagreement regarding the proposed job cuts.
"In the meantime, work will continue to resolve remaining open points with the Magna/Sberbank proposal—for example, related to labor cost reductions and the government-backed financing package — to document the related understandings, and complete all preparations for the signing of binding agreements should that be authorized by GM’s Board at the November 3 meeting."
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