Sunday, November 1, 2009

Britain to agree on a financing package to support Opel/Vauxhall takeover

British Business Secretary Peter Mandelson gave an update on Magna International’s takeover of Opel and Vauxhall, stating that the UK is closer to agreeing on a financing package. Mandelson said that talks are ongoing and that so far, there are only one or two issues to be resolved between the European governments and Magna.

German Chancellor Angela Merkel, who represents the government, has offered 4.5 billion euros ($6.63 billion) in guarantees for Magna’s takeover of Opel, General Motor Co.’s European arm. She explained that Germany and the other European countries with GM car plants would be meeting and deciding subsequently how to split those guarantees. It is believed that the British share will be worth about 400 million pounds ($657.8 million). Mandelson is optimistic that a deal on the UK share of the financing could be signed in the next few days. He assures though that the UK would pay a “reasonable” share.