Magna takeover of GM to complete by September

MAGNA INTERNATIONAL looks set to close its takeover of GM Europe by September, it said yesterday, as the white knight clarifies the details of its takeover.

Magna agreed to buy the European arm of bankrupt car firm General Motors (GM) at the weekend, as its US parent filed for Chapter 11.

The Canadian carparts maker added that the agreement with GM prevents it from selling Opel in the US. A ban on selling the brand in China was “flexible,” Magna added.

Meanwhile, the sale of GM’s Hummer brand to Chinese company Sichuan Tengzhong Heavy Industrial Machinery went ahead yesterday.

Selling Hummer will secure more than 3,000 US jobs and help GM move toward a goal of offloading four US brands to exit bankruptcy as a leaner, more profitable company. The deal will help the Chinese firm expand its sports utility vehicle presence in China.