Reports indicate The PSA Group’s planned acquisition of General Motors’ Opel division is slated to be complete by the end of August. The news means the merger that will create Europe’s second largest automaker is moving ahead of schedule.
Some changes at Opel have already been seen, despite still being under GM ownership for now. Dr. Karl-Thomas Neumann, who served as Opel’s CEO under GM’s leadership, has already resigned. While Neumann will stay on the Opel board through the completion of the merger, PSA has already confirmed its finance chief Michael Lohscheller will take over as Opel’s CEO.
The $2.3 billion deal between PSA and GM is designed to offload the money-losing Opel operation from GM’s balance sheet, while providing PSA needed economic scale to enhance its own profitability into the future. The company is hoping to achieve over a billion euros in cost savings between the two automakers by 2026, some of which will be achieved by 2020.
The European Union has already provided an “unconditional” approval of the deal between GM and PSA, meaning the deal is ready to finalize as soon as both parties are comfortable with the terms and plan.