Aurora, Ontario – Ontario-based auto parts manufacturer Magna International, in conjunction with Sberbank, the Savings Bank of the Russian Federation, has been selected to purchase a 55 per cent interest in Adam Opel GmbH by General Motors.
Under the offer, the Magna and Sberbank will own the share 50:50 as a consortium. General Motors will retain a 35 per cent interest, and Opel employees will acquire ten per cent as part of a new labour framework. The Magna/Sberbank Consortium is expected to make a total equity investment of €500 million over time.
“Upon the successful completion of the acquisition, Magna will put in place appropriate firewalls in order to ensure a complete separation between its current auto parts business and Opel, so that the confidential and proprietary information of its customers is fully protected,” said Frank Stronach, chairman of Magna.
Completion of the purchase remains subject to the finalization of definitive agreements and other conditions, including government-backed financing and regulatory approvals.