The deal makes PSA Group the second largest automaker in Europe.

The firm which owns French car manufacturers PeugeotCitroen, and DS has confirmed it’s buying Opel and its British subsidiary Vauxhall from General Motors as part of a deal said to be worth $2.3 billion. The deal would make PSA Group the second biggest car company in Europe, behind Volkswagen Group but overtaking Renault-Nissan.

According to an official statement, the transaction includes all of Opel/Vauxhall’s automotive operations - the Opel and Vauxhall brands, six assembly and five component-manufacturing facilities, one engineering center (Rüsselsheim, Deutschland), and approximately 40,000 employees. General Motors will retain its engineering center in Torino, Italy, which is used for international projects.

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Opel's products will continue to use GM technologies and to benefit from intellectual property licenses by the automaker until its vehicles progressively convert entirely to PSA platforms over the coming years. This means, the Crossland X and Grandland X are only the first to come from a series of models based on PSA architectures.

“We are proud to join forces with Opel/Vauxhall and are deeply committed to continuing to develop this great company and accelerating its turnaround,” said PSA’s chairman of the managing board, Carlos Tavares.

This morning’s announcement follows weeks of speculation and concern by many in the UK that a buyout could lead to the closure of Vauxhall’s plants in Ellesmere Port and Luton. The French government owns a 14-percent stake in PSA Group and is thought to favor moving Vauxhall production to France in a bid to save paying potential tariffs once the UK has left the European Union.

This is a headache British PM Theresa May could do without, after months of private negotiations with bosses of Japanese car manufacturer Nissan - which employs 7,000 workers at its Sunderland plant in the North East.

Vauxhall car production

“We respect all that Opel/Vauxhall’s talented people have achieved as well as the company’s fine brands and strong heritage. We intend to manage PSA and Opel/Vauxhall capitalising on their respective brand identities. Having already created together winning products for the European market, we know that Opel/Vauxhall is the right partner. We see this as a natural extension of our relationship and are eager to take it to the next level.”

A press conference will be held in Paris later this morning.

Check out the press release section below for full details.

Source: Opel and PSA Group

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