PSA strikes deal to buy Opel from GM, wins board approval

Savings of up to 2 billion euros ($2.1 billion) is expected from the tie-up

France's PSA Group struck a deal with General Motors to buy the US carmaker's loss-making Opel division, two sources with knowledge of the matter said.

The board of PSA, maker of Peugeot and Citroen cars, approved the deal on Friday with an announcement planned for Monday, one of the sources said.

Spokespeople for PSA and Opel declined to comment.

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.

Earlier on Friday, Opel managers had adjourned a town hall meeting with workers until Monday morning, saying they could not yet discuss details of the planned acquisition.

PSA boss Carlos Tavares said last week a full acquisition of Opel offered an "opportunity to create a European car champion" and quickly exceed 5 million annual vehicle sales. 

The French carmaker also expects savings of up to 2 billion euros ($2.1 billion) from the tie-up, sources have said.