The PSA Group (Peugeot, Citroen, DS) has made a significant step forward towards their acquisition of Opel. Yesterday, the French automaker has just gained unconditional EU antitrust approval. This means that the deal is in full swing pending the transaction.
“Today, we have taken a substantial step. The teams are now focused on the achievement of all other conditions necessary for the closing, planned for later this year,” Patrice Lucas, PSA's manager of programs and group strategy. According to PSA Group, the European Commission said the deal did not pose any competition concerns.
Prior to this announcement, the PSA Group acquired GM's European arm for $2.3 billion. It was also previously reported that General Motors is expecting $5.5 billion from Peugeot-Opel deal once the legal fees have been settled. With that, PSA Group vows to return Opel, as well as Vauxhall, back to profitability. The company aims to bring the two brands to an operating margin of two percent within three years. By 2026, the PSA Group plans to raise operating margin by six percent. As for the final cost, the deal is by EU antitrust officials.
The PSA Group is now closer to getting six assembly plants from Opel and Vauxhall, along with five other manufacturing facilities for parts. Peugeot is also set to take over the Opel engineering center, along with approximately 40,000 employees. The company will also take over the Luton headquarters of Vauxhall. In the meantime, Opel and Vauxhall products will continue to use GM technologies, from engines, platforms and other mechanical parts. A few years down the line, Opels and Vauxhalls will eventually be using Peugeot technologies and hardware.