Opel deal looks likely to close this week

GENERAL MOTORS may finalise a deal tomorrow to sell a majority stake in its European carmaking arm Opel to a Canadian-Russian…

GENERAL MOTORS may finalise a deal tomorrow to sell a majority stake in its European carmaking arm Opel to a Canadian-Russian consortium.

Talks with governments and labour representatives on the Opel restructuring that is set to lead to thousands of job cuts across Europe have dragged on for months, fuelling anger among staff, half of whom are in Germany.

Spanish labour unions said no agreement had been reached with Magna over jobs in Spain at the Opel factory in Zaragoza.

On Monday Vauxhall, which employs around 5,500 people, said progress was being made but there were still issues to be settled.

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GM decided last month to sell a 55 per cent stake in Opel to a consortium including Canadas Magna and Russia’s Sberbank.

“It’s quite possible to see documents signed this week,” GM chief executive Fritz Henderson said.

Magna and the Russian bank have vowed to inject €500 million into Opel, aiming to use it to make an aggressive push into the Russian market. They also plan to cut about 10,500 European jobs.

– Reuters