The French group PSA announced on Monday they reached an agreement with General Motors (GM) to acquire its European automobile subsidiary deficit for 1.3 billion euros (1.74 billion Canadian dollars), which will give birth to the second-largest vehicle manufacturer in the Old Continent.
In addition to the acquisition of the Opel and Vauxhall brands, which it hopes to bring back to the green by 2020, PSA (Peugeot, Citroën and DS brands) will take over jointly with the French bank BNP Paribas the financial subsidiary of GM Europe for 900 Million euros.
“The transaction value for PSA, including Opel / Vauxhall and 50% of GM Financial’s European operations, will be 1.8 billion euros,” said the French automotive group, which netted a net profit of 2, 15 billion euros in 2016.
The European division of GM is, on the other hand, in chronic deficit, having lost another 257 million dollars last year. Over 16 years, the bill amounts to $ 15 billion for the Detroit colossus.
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