European Union Decides PSA Buying Opel is Copacetic

The EU Executive Commission has given PSA’s acquisition of Opel and Vauxhall its blessing. 

PSA hopes the merger will better help it compete with rivals and market leaders, Volkswagen, as the acquisition catapults the French automaker into the No. 2 position. Merging of the automotive business was given unconditional approval by the commission, which concluded the transaction “raises no concerns.”

However, EU antitrust authorities still must approve PSA’s acquisition of GM Financial’s European operations, but the decision isn’t expected until later this year.

In March, GM decided it would sell Opel and its subsidiary brand, Vauxhall, to PSA in a deal worth $2.5 billion after 90 years of owning the German company.

PSA’s strategy director Patrice Lucas described the decision as “an important step” but warned that there are other issues and conditions that need to worked out if the deal is to close before 2018.