RHJ fights for GM Opel deal
RHJ INTERNATIONAL is stepping up its bid to broker a deal with General Motors for a controlling stake in Opel after talks between the US carmaker and Magna International stalled.
The Brussels-listed industrial holding company, linked to US buy-out firm Ripplewood, is set to present GM with a better offer early this week.
In May, GM signed a memorandum of understanding on the stake with Canadian Magna International, which is bidding with Russia’s Sberbank. But RHJ now thinks it has a better chance of sealing the deal as negotiations between GM and Magna have stumbled over issues such as intellectual property.
RHJ will say it needs a smaller amount of German government guarantees to finance the deal than Magna – €3.8bn (£3.27), compared to the €4.5bn Magna is seeking. RHJ is targeting a stake of about 51 per cent to 55 per cent of Opel.
RHJ’s original offer backed GM’s plans in a restructuring blueprint to close three Opel plants. Germany’s government was unimpressed – and the new offer will include guarantees to keep plants open.
Magna’s bid enjoys strong support from Germany’s unions, its central government, and local politicians in the federal states where it has plants.