China submits bid for Opel/Vauxhall – report
July 6, 2009 by Matt Brogan
Despite already having a signed agreement with Magna International, a report from German newspaper Frankfurter Allegemeine Zeitung today says GM is considering a bid by China’s Beijing Automotive Industry Holding Corporation (BAIC) for a majority share of Opel.
The deal, worth a reported 660 million Euros, could be made binding as early as the end of the month and would see the Chinese company own a 51 per cent stake in Opel, but analysts say that GM will only consider the offer if the Magna deal falls through.
If the deal were to be completed, BAIC would be the main shareholder in both Opel and its British sister brand Vauxhall, leaving GM with 49 percent.
This remaining share would then be divided between Magna International, which would take a 20 per cent stake, and Russian partner Sberbank 35 per cent.
The remaining percentage would be owned by Opel dealers and employees.
Industry watchers still believe Magna’s consortium is the front-runner to buy Opel, but GM has said it is taking to other potential buyers for Opel including Belgium-based holding company RHJ International and BAIC, which builds Mercedes-Benz and Hyundai cars in China with analysts pointing out BAIC is keen to expand out of its domestic market.
One source close to BAIC said it entered the process comparatively late because GM was reluctant to involve it in the process at all, as the US carmaker does not want to create additional competition in China from Opel.
Analysts believe the only way Magna’s acquisition of Opel would collapse is if Magna withdrew its bid, forcing GM to then negotiate with another bidder like BAIC.
Fiat CEO Sergio Marchionne said on June 29 that his company is still interested in Opel despite Fiat withdrawing its bid in May.
GM can no longer afford to finance Opel and is selling majority control of the carmaker, which also includes plants in Britain, Spain, Belgium and Poland.
Germany, where most Opel plants are located, has provided 1.5 billion euros in finance to keep Opel alive until an outside investor is found.
Print it: 
*****PRIMO!*****
The BEST deal for long term survival [and THE only one that will work], is to join with FIAT.
Alas GM don’t care about the long term survival of Opel/Vauxhall, they are ONLY interested in maximum fiscal return, which is fair enough.
If Opel/Vauxhall wants to survive it needs FIAT platform and model share, together with now a large dealer base to sell the said product.
Both Magna and BAIC will pay more, which is good for GM, but long term its DOOMED
Cheers
F-0
FIAT already struck a deal to buy chrysler.. They are not in the market for a second failing auto maker! one is more then enough.
Fiat don’t have any dollars, nor have they offered any dollars to the table in their discussions to buy into Opel/ Vauxhall. That is why the the Magna International & Sberbank got the front running. The Fiat proposal was requesting assistance from the German Government to be able to be funded, how could anyone say that was the best deal?
The thing with the BAIC offer is that they have dollars and the backing of their Government (being predominately state run organisations) so if the original deal falls short then this is a good one to have up your sleeve. Notice GM didn’t want to include these guys in the process because it would be in comptition to their joint venture in China
This is just a far off thought, but what if Holden bought them. Then we would get the magnificent Insignia and the Astra, without the massive price hikes. Just a thought
Shak Says:
July 6th, 2009 at 3:12 pm
“This is just a far off thought, but what if Holden bought them.”
With what? Holden can’t make money by itself. You and I are the ones keeping that company afloat…
true realist, but if only……