Peugeot's Purchase of GM's Opel Business Expected to be Announced Monday

By Mike Colias and Nick Kostov

A deal for General Motors Co. to sell its Adam Opel AG European business to French car maker Peugeot is expected to be announced Monday, according to two people familiar with the plan.

The companies finalized terms in recent days after several months of discussions, one of the people said. A purchase price couldn't be learned. Representatives for GM and Peugeot declined to comment.

It is unclear if directors at both companies have signed off on the deal, and an announcement could still be delayed. Several European governments have weighed in on implications for jobs related to the tie-up, and last-minute objections in Paris, Berlin or London could also delay a final agreement.

With the acquisition, Peugeot, officially known as Group PSA SA, would boost its European market share more than 6 percentage points to about 16% and pass French Rival Renault SA -- climbing into second place behind Volkswagen AG's 24%.

Unloading Opel, an iconic German brand that sold its first vehicle at the end of the 19th Century, would knock GM's volume down by 10% and signal that Chief Executive Mary Barra has shelved any plans to re-enter the running for the crown of the world's largest car maker.

(END) Dow Jones Newswires

March 03, 2017 13:45 ET (18:45 GMT)

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