French automaker PSA Group (Groupe PSA) has completed the acquisition of General Motors' (GM) European brands Opel and Vauxhall.
With the acquisition now being officially complete, PSA Group has become the second largest automaker in Europe, with an estimated market share of about 17%.
The French automaker now owns six brands under its umbrella, out of which five are car brands and one is a ride-hailing brand. These include Peugeot, Citroen, DS Automobiles, the newly acquired Opel and Vauxhall and Free2Move.
PSA plans to strengthen its position in the European automotive market with its respective brands and said that they can act as a foundation for a profitable growth in the days ahead.
PSA and GM were in advanced talks over the acquisition of the brands, this February and in March, the two companies agreed for the same. The deal was worth €2.2bn. The proposal received clearance from European Union’s antitrust body in July this year. And, now in August, the deal has been closed.
PSA also stated that it is in talks with GM over the sale of GM Financial’s European operations. This deal is subject to approval from EU’s antitrust body and is expected to be closed during the second half of this year.
Groupe PSA managing board chairman Carlos Tavares said: “We are embarking today with Opel and Vauxhall on a new stage in Groupe PSA's development. This project became a reality with a few months only, thanks to the outstanding work of the teams and I want to thank them warmly.
“We will grasp this opportunity to build on one another's strengths and to attract new customers, thanks to the implementation of the performance plan that Opel and Vauxhall will implement. In parallel, the execution of the Push to Pass plan remains a top priority for the teams, they are focused on achieving the objectives. We have confidence in the momentum that these strategies will create, to the benefit of all stakeholders.”
GM stated that the sale is a win for its shareholders and the move represents its action to improve its financial position, while securing its future.
GM president Dan Ammann said: “We’ve taken another bold step in our ongoing work to transform GM.
“This transaction allows us to sharply focus our resources on higher-return opportunities as we expand our technical and business leadership in the future of mobility.”
