Magna Signs German Opel DealBusiness | May 30, 2009, Saturday // 12:54| views
The Austrian-Canadian firm will buy a majority stake from Opel's US parent company General Motors. Photo by BGNES
The German carmaker Opel will be bought by Austrian-Canadian Magna International.
The deal was announced Saturday by a German state-owned television, CNN reported.
The Austrian-Canadian firm will buy a majority stake from Opel's US parent company General Motors.
"I can tell you that a solution has been found. The state-guaranteed transitional credit for Opel has been arranged", Finance Minister Peer Steinbrueck said early Saturday after a meeting with the dealmakers.
In exchange for Magna investing in Opel, the German government will provide a USD 2,1 B bridge loan to GM to keep Opel in business, Steinbrueck further explained.
Financially strapped General Motors is Opel's parent company. GM is expected to declare bankruptcy as soon as Monday.
Earlier Friday, Italian car giant Fiat pulled out of talks on the future of Opel, saying it was unwilling to provide the kind of emergency funding the German government was seeking.
German officials have said that if no qualified investor is found, the government is prepared to allow Opel fall into insolvency.
Any bidder for Opel would also be buying GM's European operations. That means the outcome of the talks would have a direct impact on GM's other operations across the continent, including plants in Europe, and the Vauxhall car brand in Britain.
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