Two billion dollars, that is the price of the purchase of Opel by PSA Group

The most talked-about brand purchase of this year is that of Opel by PSA Group, which wants to take over the German brand after its first dealings with GM. This deal hit the front pages of the specialist press a few days ago and is surrounded by many question marks. Both companies have been quick to point out that it is a pre-agreement, that there is still much to discuss on the subject, and that it is not entirely closed. But we already know the saying: “where there’s smoke, there’s fire…”

And the rumours keep coming, providing more data on the deal, including an amount of money that could be what GM pockets from this operation in exchange for one of its best-known brands in the European market. Two American billion dollars, which amounts to two billion, will change hands in exchange for Opel and Vauxhall.

This payment would be made in two parts: on the one hand, one billion dollars in cash at the time of purchase. The other half would consist of the company’s liabilities, so that half of the price would be debts and other liabilities of GM related to the brand up for sale. All of this, provided some of the problems they are running into can be ironed out, above all the agreements to保持 jobs at the German and British plants, something that worries the governments of both countries.

With all this, the purchase agreement appears to be moving forward. One point of conflict is also the existence of similar products in the two companies’ line-ups. This could be solved with a redesign already proposed for Opel, which was going to offer us new versions of its models. The signing date for the pre-agreement seems very close, and we will see how one of the most important deals of recent years is sealed, similar to the one we saw when Fiat became part of PSA a few years ago.

Source: Bloomberg