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<span class="articleLocation”>France’s PSA Group struck a deal with
General Motors to buy the U.S. carmaker’s loss-making
Opel division, two sources with knowledge of the matter said.
The board of PSA, maker of Peugeot and Citroen cars,
approved the deal on Friday with an announcement planned for
Monday, one of the sources said.
Spokespeople for PSA and Opel declined to comment.
The two carmakers, which already share some production in an
existing European alliance, confirmed last month they were
negotiating an outright acquisition of Opel and its British
Vauxhall brand by Paris-based PSA, sparking widespread concern
over possible job cuts.
Earlier on Friday, Opel managers had adjourned a town hall
meeting with workers until Monday morning, saying they could not
yet discuss details of the planned acquisition.
PSA boss Carlos Tavares said last week a full acquisition of
Opel offered an “opportunity to create a European car champion”
and quickly exceed 5 million annual vehicle sales. The French
carmaker also expects savings of up to 2 billion euros ($2.1
billion) from the tie-up, sources have said. (Additional reporting by Edward Taylor in Frankfurt)
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