GERMANY’S ECONOMIC minister has said the future ownership of Opel remains open after reports of a renewed takeover bid by China’s Beijing Automotive Industry Corp (BAIC).
The news comes despite a letter of intent signed in May between Opel parent General Motors and Magna, an Austrian-Canadian car parts company.
“I’m aware of Magna’s ambitious goal to sign a contract by mid-July but there are still some open questions,” said economics minister Karl-Theodor zu Guttenberg in an interview published yesterday morning. “In this stage everyone is free to make an offer.”
Many questions remain about Magna’s financing of its proposed Opel takeover, in particular the cost to the German state.
According to a report in the Sunday edition of the Frankfurter Allgemeine newspaper, Magna has asked for €4.5 billion in loan guarantees for Opel after a takeover, considerably higher than the €2.64 billion requested in the Chinese offer.
Executives from BAIC have reportedly offered to pay €660 million for the company and have written to several German ministries promising to keep open all Opel plants in the event of a takeover.
The Chinese have yet to make a binding offer for the company but are optimistic that their bid for 51 per cent of the company – with 49 per cent remaining with GM – could find favour if the Magna deal collapses.
German concerns about the iconic car company falling into Chinese hands are matched by worries over the Magna deal.
The May agreement would give Magna a 20 per cent stake in the company, with a further 35 per cent going to Russia’s state-owned Sberbank.
Another bid by Fiat failed after the Italian company offered no cash up front for the company.
GM Europe head Carl-Peter Forster said he remained optimistic that the deal with Magna was on track.
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