Opel: Magna to Close Deal by Mid-September

The Magna - Opel takeover is surely one of the most complicated deals in the auto sector, with all kinds of reports hinting either that the Canadian parts manufacturer might lose the German brand or the company is close to completing the deal. With some voices claiming the German government is also negotiating with BAIC and RHJ International, an Opel supervisory board members told Reuters that the deal should be done by mid-September, just like Magna announced a few months ago.

"There should be a contract ready by July 15 between GM and mid-September there should be a closing," said Rainer Einenkel, the senior labor leader at Opel's Bochum plant.

But GM Europe says it is still in talks with other interested parties, probably in a move meant to keep the pressure on Magna.

“We’re in very active negotiations with several potential partners including Magna, Beijing Auto and Ripplewood,” Chris Preuss, a GM Europe spokesman, was quoted as saying by Bloomberg. “I wouldn’t comment at this point on the status of the talks or the specific details of the negotiations other than to say we have very strong interest in Opel from all the parties involved.”

Some disagreements between the two sides might be exactly the problems Fiat's CEO Sergio Marchionne was talking about when saying there are some difficulties between GM and Magna. Additionally, the German government is concerned that Sberbank intends to sell its 35 percent stake in Opel in case the deal goes through.

According to several reports, Magna International is the solely responsible for the current situation, as the Canadian - Austrian investor is now "pushing extreme demands," as Armin Schild, a member of Opel’s supervisory board and an official of Germany’s IG Metall labor union, told the aforementioned source.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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