Frank Stronach, the Canadian owner of auto parts maker Magna International, has added another property to his business empire: General Motors Corp.’s Opel unit.
After a second round of high-level talks in Berlin Saturday, a plan was approved for Magna to move ahead with Opel’s rescue.
The German government and several state governments will provide a €1.5-billion ($2.3 billion) bridge loan for the deal, part of which will be available immediately.
Under the agreement, Magna, Canada’s largest auto parts maker, will take a 20 per cent stake in Opel, and the Russian-owned Sberbank will take a 35 per cent stake, giving their consortium a majority. GM will retain a 35 per cent holding, while the remaining 10 per cent will go to Opel employees.
For Stronach, the acquisition of Opel is the biggest deal in his company’s history and cements his legacy as one of Canada’s most globally ambitious executives.
The deal provides Magna with a major vehicle-assembly capacity to cash in on the lucrative Russian car market.