The PSA Group’s purchase of Opel and Vauxhall from General Motors has been given the go-ahead from the European Union’s antitrust authorities.
With approval secured from the EU, one of the key hurdles has been cleared in the 2.2 billion euro ($3.3 billion) purchase of the majority of General Motors’ European operations by the PSA Group.
Announced in March, the deal is expected to close by the end of this year. Once completed, the PSA Group will become Europe’s second largest car maker by volume after the Volkswagen Group. The enlarged French automaker will then encompass five key brands: Peugeot, Citroen, DS, Opel and Vauxhall.
Above: 2018 Holden Commodore Sportwagon, based on the Opel Insgnia Sports Tourer.
In the short term, the transaction will not impact the supply of the Holden Astra hatch and wagon, and the next-generation Holden Commodore, all of which will continue to be produced by the PSA Group under licence and will be delivered under “existing supply agreements”.
It has been estimated Opel/Vauxhall has lost around US$15 billion ($19.6 billion) since the turn of the century. The PSA Group hopes to make the German automaker cash flow positive by 2020.
The EU is still reviewing the proposed purchase of GM’s European finance arm by the PSA Group and BNP Paribas. A decision on this takeover is expected during the second half of 2017.