PSA Group may have to part ways with $2 billion if it hopes to purchase Vauxhall & Opel from General Motors.
People close to the deal suggest that a potential deal could involve approximately $1 billion cash while PSA would also assume about $1 billion in liabilities.
Although the final figure could change depending on the value of brand rights, savings potential and pension liabilities, The Detroit News reports that a deal could be done as early as next Thursday when PSA releases its full-year earnings.
It is thought that one of the major hurdles in getting the deal done relates to the brands’ similar product portfolios. Additionally, an agreement needs to be reached on how PSA would be able to retain UK production of Vauxall & Opel models through the next decade as GM was planning on redesigning these models.
In a statement last Friday, Opel labor representative Wolfgang Schaefer-Klug said “We are prepared to conduct talks with PSA in the case of an acquisition openly and in a constructive manner and to bring those talks to a conclusion as soon as possible.
“Our objective must be to seize the existing opportunities to safeguard employment and sites to create a successful Opel/Vauxhall.”