Will GM Comply?
PSA, the owner of Peugeot and Citroen, is contemplating buying GM’s Opel division. If completed, such a deal would create a carmaker that is expected to be the second-largest in Europe, holding around 16% of the market. The current number two is Renault SA and we hope we don’t need to tell you that Volkswagen is number one.
Needless to say, any potential Opel deal will be valued at multi billions – some estimations mentioned 2.6 billion euros – but no official sum has been mentioned yet. Why could GM be interested in such a deal? It will mean an exit from Europe, where the Brexit decision placed pressure on the GBP and GM’s operations in Britain.
This would only be one topic of the existing discussions between the French automaker and GM, and the sale remains, for now, only one of several possibilities. Negotiations are bound to be challenging and the industry, as well as investors, will be anxiously following every piece of news.
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