RHJ back in the running for GM

PRIVATE equity firm RHJ International yesterday re-emerged as a strong contender to buy GM Europe saying it would keep Vauxhall’s two UK plants open and would make the European unit profitable by 2011.

The firm said it is has been in “advanced” negotiations for several weeks with GM and now felt it was “appropriate to confirm these talks.”

RHJ pulled out of talks in May, leaving Canadian car parts maker Magna as the front-runner to take over GM’s European business, which includes Opel and Vauxhall.

But it is now back in the race for the business, along with Beijing Automotive Industries, which yesterday also confirmed it had bid for a stake in Opel.

RHJ is reported to require only €3.8bn in state aid as part of a deal for a majority stake in Opel, against an expected request of €4.5bn from Magna.

But Magna was yesterday pushing ahead for a formal deal to be signed within the next few days.

Earlier in the summer Magna offered to pay €700m (£610m) for a 55 per cent slice of GM Europe and has handed over €300m of emergency funding to keep the group afloat.

Magna had previously hoped to seal a deal by 15 July.