General Motors (GM) has chosen the Canadian car parts manufacturer Magna to buy Opel and sister firm Vauxhall.
An announcement has just been made by GM's board, declaring it supports the Magna and Sberbank consortium's bid for a 55% stake in Opel and Vauxhall.
Several key issues will be finalised over the next few weeks to secure the binding agreements, including the written support of the unions to support the deal with the necessary cost restructuring for viability and the finalisation of a definitive financing package from the German government.
The definitive agreements should be ready to sign within a few weeks, with closing to follow within the next few months.
Under the deal, Magna/Sberbank will purchase a 55% stake in New Opel; GM will hold a 35% stake and employees will be provided a 10% stake.
“The hard work over the past two weeks to clarify open issues and resolve details in the German financial package brought GM and its board of directors to recommend Magna/Sberbank,” said Fritz Henderson, GM president and CEO.
“GM will continue to closely collaborate with Opel and Vauxhall to develop and produce more great cars, such as the new Insignia and the new Astra,” Henderson added.
The agreement will keep Opel/Vauxhall a fully integrated part of GM’s global product development organization, allowing all parties to benefit from the exchange of technology and engineering resources.
Germany's Chancellor Angela Merkel said that GM has attached conditions to the sale.
Earlier, there had been rumours that GM could be planning to try to keep control of its European arm.
Magna was the German government's preferred bidder.
Sue Robinson, Retail Motor Industry Federation director, said: "A number of dealers that we have spoken to are relieved that Opel/Vauxhall is being purchased by an independent buyer, as other options could have led to a rationalization of models.
"At this early stage we await further details from GM with regards to dealers."
To view the GM statement in full click here.