PSA pays GM US$2.3bil for Opel, sets first recovery goals

It’s a deal: Tavares (centre) shakes hands with Mary Barra and Karl-Thomas Neumann, chief executive officer of Adam Opel AG as they pose for the media ahead of the news conference to announce the GM deal in Paris. PSA has vowed to return Opel and its British Vauxhall brand to profit. – Bloomberg

PARIS: PSA Group has agreed to buy Opel from General Motors in a deal valuing the business at 2.2 billion euros (US$2.3bil), creating a new regional car giant to challenge market leader Volkswagen.

The maker of Peugeot and Citroen cars vowed to return Opel and its British Vauxhall brand to profit, with an operating margin of 2% within three years and 6% by 2026 underpinned by with 1.7 billion euros in joint cost savings.