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PSA looking to sell part of Opel: Le Monde
Posted on Thursday, 05 July 2018 13:52
French carmaker PSA Group is to possibly seek a partial sale of its research and development unit Opel R&D in a bid to increase profitability, Le Monde reported.
PSA inherited the unit through the acquisition of the Opel and Vauxhall brands from General Motors last year.
Opel has responded to Le Monde’s report by saying a decision is yet to be made on the R&D unit but has said: “We are looking into different options on how we can achieve a sustainable and successful set up in the engineering centre”.
According to Reuters, however, disposing of the unit could help with the restructuring of the company in the form of a strategic savings plan Pace which could introduce financial partnerships.
Le Monde reported PSA has already been reviewing engineering firms, which could potentially invest in four sections of its unit, the valuation of which would total EUR 500.00 million.
The newspaper, citing an internal document produced in May, states the companies that have been approached include French Altran, Akka, Segula and German Betrandt.
A sale would comprise Opel’s vehicle and propulsion engineering manufacturing areas as well as tool and die operations and the test centre.
PSA specialises in the manufacturing and distribution of vehicles, claiming to be the second largest vehicle distributor in Europe.
The company has an international presence in 100 countries, with 212,000 employees, including 3,980 in its sections headquartered in Russelsheim.
Company revenue for the year ending 31st December 2017 was EUR 65.20 billion.
Opel, headquartered in Germany, also specialises in car manufacturing alongside its sister brand Vauxhall, which together sold 1.16 vehicles in 2016.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 151 deals targeting motor vehicle manufacturing providers announced worldwide since the beginning of 2018.
The largest of these is worth USD 6.17 billion and took the form of minority stake increase in automobile manufacturer holding company Daimler by Tenaclou3 Prospect Investment.
© Zephus Ltd