RHJ details Opel bid

Now Reading:

RHJ details Opel bid

Text size Aa Aa

Details have emerged of the offer for General Motors’ Opel and Vauxhall business from the Belgium-based investor RHJ International.

In a last-ditch bid to beat out Canadian car parts maker Magna – which is the front-runner to buy Opel – RHJ said it would pay 275 million euros for a 51 percent stake. RHJ’s boss said they would cut 10,000 jobs across Europe; 3,900 of those in Germany. It was not specified where the other job losses would be. Vauxhall employs 5,000 people in Britain. GM is selling its European operations as part of a radical slimming programme to restore profitability. The German government, which would put up 1.5 billion euros in loans to whoever buys Opel, favours Magna, as do the four German states where Opel has plants and the carmaker’s unions. Magna, backed by Russia’s Sberbank, wants to use Opel to make an aggressive push into the Russian market.