PARIS: French carmaker PSA on Monday announced the acquisition of General Motors' European subsidiary, which includes the Opel and Vauxhall brands, for 1.3 billion euros ($1.38 billion).
The move sees PSA regain its position as Europe's second-largest automobile manufacturer, after Germany's Volkswagen, overtaking rival French firm Renault.
PSA said in a statement it was also buying GM Europe's financial operations for 900 million euros in a joint deal with bank BNP Paribas, taking the total value of the deal to 2.2 billion euros.
The takeover includes six assembly plants and five component-making facilities and some 40,000 employees.
Plans for the takeover of the Opel division by PSA, which owns the Peugeot and Citroen brands, were unveiled in the middle of February, sparking fears in Germany and Britain that the prospective new owner could cut non-French jobs.
PSA boss Carlos Tavares said the firm was "deeply committed to continuing to develop this great company and accelerating its turnaround".
"We are confident that the Opel/Vauxhall turnaround will significantly accelerate with our support, while respecting the commitments made by GM to the Opel/Vauxhall employees," Tavares said.
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