As expected, Fiat has confirmed that it has submitted an offer for GM Europe’s Opel and Vauxhall operations.
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Should this transaction be concluded, a new company encompassing the activities of Fiat Group Automobiles (including its stake in Chrysler) and Opel would be created, Fiat said in a statement.
Magna International and Belgium-based investment firm RHJ International have also submitted bids for Opel to the German government ahead of an 18:00 CET deadline on Wednesday (May 20). The Magna bid is being backed by Russian manufacturer GAZ.
The final decision on who buys GM Europe, which includes Opel in Germany and Vauxhall in Britain, lies with GM itself and with the US government, but the German government will sweeten any deal with millions of euros in loan guarantees.
Fiat is thought to be preparing an offer of assets instead of cash, in a similar model to its recent deal securing a stake in Chrysler.
Italian daily La Repubblica cited on Wednesday the letter of intent that Fiat is handing over in Berlin as saying the firm will put on the table know-how and its vast sales network.
The German government is expected to make its Opel bid preferences known next week and GM has said it wants to choose a partner for Opel/Vauxhall by the end of the month.
