Opel has a new owner.
France's PSA Group has inked a deal to buy General Motors' Opel division, a new report finds.
After a couple weeks of back-and-forth negotiations, the board of PSA has reportedly agreed to purchase Opel, along with its British sister brand Vauxhall, from GM. Two inside sources told Reuters that the deal will be formally announced on Monday.
The exact details of the agreement are unknown at this time, but the two sides reportedly made progress on Opel's pension plan, which was underfunded by about $9 billion. The two companies had been bickering about who should be responsible for footing the bill.
PSA likely used a non-compete clause to help convince GM to pay more into the pension. GM had expressed concerns about PSA using Opel to compete against its Chevrolet brand in China. Insiders say PSA might have given GM assurances about competition in China to offset pension payments.
PSA is optimistic that acquiring Opel will save the company about $2.1 billion. GM, on the other hand, is happy to see Opel go after losing the company money for the last 16 consecutive years.