GM Says Magna, Sherbank to Purchase Opel Unit

General Motors Co. said Thursday that Canada's Magna International Inc. (NYSE: MGA) and Russian lender Sberbank would take a majority stake in its European subsidiary Adam Opel GmbH, according to Associated Press.

GM said it would keep a minority stake and continue to develop vehicles in partnership with Opel. The agreement from labor unions to unspecified cost reductions and a financing package from the German government are among the key issues that would have to be finalized, but it expected the deal to close in the "next few months."

The deal was lauded by German Chancellor Angela Merkel, who saw it as a jobs saver ahead of Sept. 27 national elections. Magna agreed to keep Opel's four German plants open.

Auto parts firm Magna and Sberbank will purchase a 55-percent stake and GM will hold 35 percent. The remaining 10 percent will go to workers.

Opel engineers are responsible for developing GM's next generation of small and midsize cars. The new Buick LaCrosse is built on an Opel Insignia platform, and GM's new global small cars are based on the Opel Astra.

Opel also has factories in Poland, Spain, Belgium, and Portugal. Opel employs some 49,000 workers across Europe, including 25,000 in Germany where it counts four major plants, along with Opel's headquarters.

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