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Magna's New Offer for Opel

As announced yesterday, Canadian manufacturer Magna and its partner, Russian bank Sberbank, have submitted their final bid for GM's Opel, in an attempt to acquire a 55 percent stake in the company. Unlike in their first offer, the stake which Magna hopes to acquire in {Ad}Opel will be evenly divided with Sberbank, in a move aimed at cooling growing concerns about Russia's involvement.

According to a statement released by the two partners, the offer calls for a 500 million euro investment by the consortium over time. Unfortunately, no other details have been provided.

Overall, except for the even split of shares, not much has changed in the overall structure of the proposed deal. Magna/Sberbank will own 55 percent, GM 35 percent and Opel employees 10 percent, as part of a new labor framework.

"General Motors is expected to review all submitted offers for Opel and determine the next steps in the sale process," the consortium said in a statement.

"If the offer is successful, any transaction between the Consortium and General Motors would still be subject to finalization of definitive agreements and other conditions, including government-backed financing. Therefore, there is no assurance at this time that any transaction will result from the current involvement of Magna and Sberbank."

"If the Consortium is successful in completing the acquisition, Magna will put in place appropriate "firewalls" to ensure that its current business will operate independently from Opel."

The other two bidders, BAIC and RHJ have also submitted their bids for Opel, although neither have confirmed the move. It is expected a conclusion will be reached soon, despite the GM-Berlin standoff.

 
 
 
 
 

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