PSA Reaches Deal to Purchase Opel, Report Says

PSA Group has reached an agreement to purchase Opel from General Motors, according to a report from Reuters.

Citing an unnamed source, Reuters says board members for PSA approved the deal today. The French automaker plans to make a formal announcement on Monday, the source said.

The news comes just a couple of weeks after the automakers officially confirmed talks of a potential acquisition. On February 14, a statement said, “there can be no assurance that an agreement will be reached.” The potential deal had been valued at $2 billion, according to a recent report.

PSA Group runs the Peugeot, Citroën, and DS car brands sold outside the U.S. Acquiring Opel would propel PSA ahead of Renault in terms of market share in Europe. With 16.3 percent of the market, PSA would come in second place just behind Volkswagen.

This isn’t the first time GM has attempted to unload its unprofitable European operations. GM almost sold it to Canadian parts maker Magna before retreating from the plan in 2009. A deal with PSA seems natural at this moment, considering GM has worked with the French conglomerate on different occasions. In 2012, the automakers formed an agreement to share platforms and co-produce certain vehicles. GM had also bought a stake in PSA but sold it not long after the deal.

Source: Reuters

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