FRANCE’S PSA Group is set to announce a deal to buy Opel from General Motors (GM) today after striking an agreement with the U.S. carmaker and winning the blessing of its board for the acquisition.

    The maker of Peugeot, Citroen and DS cars said Saturday it would hold an early Monday press conference with GM, at which the transaction is expected to be presented after Reuters reported that a deal had been struck between the two automakers.

    By acquiring Opel, the French group will leapfrog rival Renault to become Europe’s second-ranked carmaker after Volkswagen (VW) by market share. Between them, PSA and GM Europe recorded 71.6 billion euros (US$76 billion) in revenue and 4.3 million vehicle deliveries last year.

    The tie-up was approved Friday by the PSA supervisory board, on which the French Government, Peugeot family and China’s Dongfeng are represented as shareholders, one source with knowledge of the matter said.

    The two carmakers, which already share some production in an existing European alliance, confirmed last month they were negotiating an outright acquisition of Opel and its British Vauxhall brand by Paris-based PSA, sparking widespread concern over possible job cuts.

    Sources close to the talks had reported progress Thursday after the carmakers narrowed differences on a near-US$10 billion Opel pension deficit and other issues. GM’s European arm recently posted a 16th consecutive year of losses.

    The negotiations had encountered problems over GM demands that a PSA-owned Opel be barred from competing against its own Chevrolet lineup in markets including China, they said.(SD-Agencies)