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General Motors Europe deal edges closer

General Motors Europe has reached a draft agreement with two bidders to sell of Vauxhall and Opel.

Magna International and RHJ International have both agreed terms and it is now up to General Motors in the US, as well as the German, British and US governments.

The already protracted negotiations over the future of the Vauxhall and Opel are likely to take another two weeks.

Magna is considered the favourite to buy GM Europe, but it was forced to sweeten its offer yesterday before a draft agreement could be reached.

Magna, which is backed by Sberbank, the Russian state bank, wanted access to GM’s intellectual property rights for the designs to all of its models worldwide, but has since dropped this demand after it was deemed an unacceptable request.

If Magna does end up being the winner bidder, Sberbank will get a 35% stake in the company, Magna will get 20%, GM will keep 35% and Opel workers will get 10%.

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