Sale of Opel 'not threatened' by EU concerns over competition violations
October 19, 2009
By Gernot Heller Berlin
EU concerns about the sale of car maker Opel to Canada's Magna International could be addressed and did not put the deal at risk, German Economy Minister Karl-Theodor zu Guttenberg said at the weekend.
The European Commission announced late on Friday that Competition Commissioner Neelie Kroes had written to Guttenberg voicing doubts about Germany's offer to provide e4.5 billion (R49.2bn) in financial aid for Opel as part of the deal with Magna.
In the letter, Kroes said there were "significant indications" that Germany had made the aid for Opel contingent on Magna being chosen as the winning bidder - a stance that would run counter to EU competition rules.
Speaking to reporters in Berlin on Saturday morning, Guttenberg said the deal was "on track" and voiced confidence that Germany could resolve the questions raised by Kroes.
Magna, a car parts group whose bid for Opel is backed by Russian investors, had been in competition with private equity investor RHJ International for control of the General Motors (GM) unit.
But the German government said repeatedly it had a "clear preference" for the Magna bid as it offered Opel the most promising future and would protect German jobs. It linked its offer of e4.5bn in aid for Opel to a Magna takeover, with Chancellor Angela Merkel promising in August to intervene personally, if necessary, to ensure Magna won the bid battle.
Under pressure from Germany, GM chose Magna as its preferred bidder last month. Under a deal that had been expected to be signed last week but was pushed back amid the EU doubts, GM plans to sell a 55 percent stake in Opel to Magna and Russian state-owned bank Sberbank. GM would retain a 35 percent stake in Opel under the deal and workers would hold the remaining 10 percent.
If GM has to reopen the bidding for Opel, or the deal faces significant delays, Opel could face a cash crunch, based on its previous projections. - Reuters
|
|
