Magna ‘agrees to buy GM Europe’

Car parts maker Magna International has reached an agreement in principle to rescue GM Europe, owner of Opel and Vauxhall, reports say.

The agreement was reached with General Motors, but will need to be approved by the German government, which will be providing funding to the new owner.

The other potential bidder, Fiat, said it would not be attending Friday’s talks with the German government.

GM in the US is expected to declare Chapter 11 bankruptcy on Monday.

There is due to be a meeting in Berlin at 1800 local time (1600 GMT) attended by Chancellor Angela Merkel, the ministers involved and officials from the German states that contain GM plants to discuss whether to approve the deal. Full story…