General Motors(DETROIT) — General Motors Co. announced on Monday it is selling its Opel and Vauxhall automotive operations, along with GM Financial’s European operations, to PSA Group in a deal valued at 2.2 billion euro, or $2.33 billion.
PSA, the maker behind Peugeot and Citroën vehicles, will acquire the Opel and Vauxhall brands for 1.3 billion euro, making it the second-largest automotive company in Europe. GM Financial’s European operations, meanwhile, will be jointly purchased by PSA and BNP Paribas for 0.9 billion euro.
“We are very pleased that together, GM, our valued colleagues at Opel/Vauxhall and PSA have created a new opportunity to enhance the long-term performance of our respective companies by building on the success of our prior alliance”, GM CEO Mary Barra said in a statement.
“We believe this new chapter puts Opel and Vauxhall in an even stronger position for the long term and we look forward to our participation in the future success and strong value-creation potential of PSA through our economic interest and continued collaboration on current and exciting new projects,” she added.
Carlos Tavares, the chairman of the managing board of PSA, said the company will respect the commitments GM made to Opel and Vauxhall employees.
“We respect all that Opel/Vauxhall’s talented people have achieved as well as the company’s fine brands and strong heritage,” Tavares said in a statement. “We intend to manage PSA and Opel/Vauxhall capitalizing on their respective brand identities.”
“Having already created together winning products for the European market, we know that Opel/Vauxhall is the right partner. We see this as a natural extension of our relationship and are eager to take it to the next level,” he added.
The acquisition is still subject to regulatory approvals and is expected to be completed before the end of the year.
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