In what has simplistically and, to some degree, inaccurately been characterized as a sale to Magna, GM has finally tapped the Canadian parts maker to be the buyer of the controlling stake in the beleaguered U.S. carmaker’s Opel division.
Under the deal, Magna and its Russian backer Sberbank, will receive a 55% stake Adam Opel Gmbh, while GM will retain 35%. Workers, who number 49,000, will have the remaining 10%.
Magna has apparently pledged to keep its parts business separate from the new acquisition, but regardless the deal is anything but a guaranteed profit maker for the company.
The transaction has been in the news for months, with several competing offers on the table vying for headlines, including one by Fiat, which is fresh off its acquisition of Chrysler.
Delays have characterized the road even to this point.
In any case, the deal with Magna isn’t quite finalized as, says GM, it is still awaiting ascent from the labour unions and the finalization of a financing package from the German government before it can sign off on the deal.
However, those final key points are expected in the next few weeks. The deal is expected to close in the next few months.