GM kills Magna deal
Source: CBC News
Posted: 11/03/09 5:43PM
Filed Under: Top News
The board of General Motors Co. Tuesday killed the plan to sell its European divisions, Opel and Vauxhall, to Magna International.
The decision ends months of negotiations by Aurora, Ont.-based parts maker Magna and its partner, Russian lender Sberbank.
"Given an improving business environment for GM over the past few months, and the importance of Opel//Vauxhall to GM's global strategy," the automaker said in a statement, "the GM board of directors has decided to retain Opel and will initiate a restructuring of its European operations in earnest."
In September, GM chose Magna and Sberbank over a bid from Brussels-based private equity firm RHJ International.
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