Car-maker Opel is a step closer to being bought out. Canadian automotive group Magna has reached agreement with Opel owner General Motors for it to acquire a 55 percent stake in Opel.
Magna’s partner in the deal is Russian lender Sberbank. Magna co-Chief Executive Siegfried Wolf has said Magna’s board of directors and Detroit- based GM need to approve the deal. The agreement with Detroit does not mean that competing bidder, Belgian financial investor RHJ International has been sidelined. But there is overwhelming support for Magna in Germany, including key players like Chancellor Angela Merkel. Magna is negotiating loans worth 4.5 billion euros guaranteed by European governments.