Peugeot maker's shareholders approve buyout of GM's Opel

Carlos Tavares, chairman of the Managing Board of PSA, and Mary T. Barra, GM chairman and chief executive officer, at a press conference in March announcing the agreement under which GM’s Opel/Vauxhall subsidiary and GM Financial’s European operations will join the PSA Group (Image courtesy of General Motors)

Shareholders of Peugeot's parent company PSA Group have agreed to the financial plans for buying General Motors' European operations, including the Opel and Vauxhall brands.

The French carmaker said in a statement that shareholders Wednesday "approved the measures of proposed financing" for the $2.3 billion acquisition announced in March.

PSA chief Carlos Tavares told the shareholder meeting that he expects Germany-based Opel to see more losses in the coming year. It hasn't made a full-year profit since 1999.

The sale also includes GM's European auto financing arm, which goes to a joint venture between PSA and French bank BNP Paribas. GM has to keep $6.5 billion in unfunded pension obligations.

The sale will make PSA, which makes Peugeot and Citroen cars, Europe's No. 2 automaker after Volkswagen.

close video ad
Unmutetoggle ad audio on off