State-owned Beijing Automotive (BAIC) has submitted an indicative, non-binding offer for Germany’s Opel, sources familiar with the situation told Reuters, and would make a binding offer by mid-July.
The news comes ahead of a Friday deadline for GM lawyers to submit papers to US federal bankruptcy Judge Robert Gerber who will rule by July 10 on a plan to create a “new GM” with brands Chevrolet, Cadillac, Buick and truck unit GMC.
Magna, backed by Russian partners, is the frontrunner to buy Opel. Sources told Reuters that Magna’s board of directors wants to approve a business plan for Opel on July 7.
Tough anti-trust probe
Belgian holding company RHJ International is the third bidder, although it posted a sharply wider full-year loss and analysts are doubtful it has the cash to compete with its rival suitors.
Whoever wins the race for Opel faces a tough anti-trust probe, a German government minister said Friday.
When asked whether he counted on Brussels examining any deal for Opel under a lengthier, so-called ‘phase II’ investigation, German Deputy Economics Minister Jochen Homann told reporters: “Yes, clearly.” He declined to specify what issues might concern EU competition authorities since the German government is still awaiting a business plan for the takeover, which he hoped to get by the end of July.
Any business plans submitted will be evaluated by PriceWaterhouse Coopers on behalf of Berlin, since the government will have to offer more state aid after already extending Opel a six-month 1.5 billion euro ($2.1 billion) bridge loan that matures on November 30.