GM to sell 55 percent Opel stake to Magna International Inc
Posted on 10. Sep, 2009 by admin in Business
GM announces it’s going to sell off 55 per cent of Opel subsidiary. The US carmaker, General Motors, announces its plans to sell 55% of Open, its European subsidiary, to a Canada-Austria based consortium called Magna International Inc.
The announcement comes after the board meet at Detroit that ended recently. The board was unwilling to hold back stake after the uncertainty of the Opel’s fate. Opel has about 25,000 workforce based in Germany.
Under the new proposal, GM is to hold back 35 per cent of the newly established Opel Company and 10 per cent to be hold back by Opel workforce.
The stake of 55% by Magna International Inc. will actually be split with Russia’s state-owned Sberbank and Gaz the Russian carmaker.
In fact, dropping of car sales prompted GM to launch major restructuring of the company’s global operations, and it includes sell off of the Opel stakes. The carmaking giant is also planning to layoff 1000 employees this month.
