Halister News

David Welch (Bloomberg) -- The carmakers discussing sale of GM’s Opel to PSA Group for ~$2b, say people familiar with the matter, asking not to be identified because the talks are private.

• The price tag includes paying ~$1b in cash, assuming ~$1b in liabilities
• The manufacturers are targeting reaching a framework agreement as soon as Thursday, when PSA reports erns
• Negotiations have accelerated since news of the possible deal broke; transaction could still fall apart
• Key sticking point is identifying ways to cut costs that unions, govts would support
• Carmakers also looking at how to make sale financially feasible, given Opel, PSA overlapping model lines, auto- industry overcapacity
  • NOTE: GM’s Plan to Sell Opel Gains Traction as Workers Warm Up to PSA NSN OLISDJ6K50Y9