Germany’s finance minister has approved Magna International’s takeover of General Motor’s Opel division. The deal gives General Motor a vehicle assembly capacity to cash in on the Russian car market, which could soon become the biggest in Europe.
US$2.1 billion bridge loan will be provided by the the German government which will be available immediately for the Toronto-area parts giant.
Germany was looking for an agreement that will shield Opel — which employs 25,000 people in Germany — from a looming GM bankruptcy court filing in the U.S. and extensive restructuring.
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