Canada’s Magna Moves Closer to Investing in GM’s Opel

Canadian car parts group Magna has reached a preliminary deal with General Motors to invest in its German unit Opel, sources close to the negotiations said on 29 May 2009.

The Canadian group Magna International and General Motors have managed to reach a preliminary agreement over the potential sale of GM's European subsidiary, the Germany car-maker Opel.

The news has been reported Interfax, which cites the German TV channel N24.

Thus, GM is expected to sell Opel to Magna International, which has taken part in the bidding together with the Russian bank, Sberbank.

General Motors and Magna are hammering out the final details before a meeting with German Chancellor Angela Merkel Friday evening, after the negotiations between the German government and General Motors were terminated Wednesday night.

After the news was announced, the shares of the other bidder for Opel, Fiat, have declined by 5,4%, according to Bloomberg.