The PSA Group has completed its acquisition of Opel/Vauxhall from General Motors, elevating PSA – which already includes the Peugeot, Citroen and DS brands – to the number 2 car manufacturer in Europe.
The deal also includes GM Financial’s European operations which are being purchased jointly with BNP Paribas, with whom PSA has entered into a long-term strategic partnership around the Opel and Vauxhall brands.
The total transaction values the businesses at €2.2 billion (€1.3 billion for the car maker and €0.9 billion for the finance operation) and is expected to enable substantial economies of scale and synergies in purchasing, manufacturing and R&D. The addition of Opel/Vauxhall, means PSA becomes the second-largest automotive company in Europe, with a 17% market share.
“We are proud to join forces with Opel/Vauxhall and are deeply committed to continuing to develop this great company and accelerating its turnaround,” said Carlos Tavares, chairman of the Managing Board of PSA. “We respect all that Opel/Vauxhall’s talented people have achieved as well as the company’s fine brands and strong heritage.”
Going some way to addressing obvious concerns re potential job losses, Tavares continued, “We are confident that the Opel/Vauxhall turnaround will significantly accelerate with our support, while respecting the commitments made by GM to the Opel/Vauxhall employees.”
GM will also participate in the future success of the combined entity through its ownership of warrants to purchase shares of PSA.
The two companies will continue to collaborate in the deployment of electrification technologies and in ongoing supply agreements for Holden and certain Buick models, while PSA may also potentially source long-term supply of fuel cell systems from the GM/Honda joint venture.
“We are very pleased that together, GM, our valued colleagues at Opel/Vauxhall and PSA have created a new opportunity to enhance the long-term performance of our respective companies by building on the success of our prior alliance”, said Mary T. Barra, GM chairman and chief executive officer.