Exclusive: GM's Opel and PSA Group in merger talks - sources

By Pamela Barbaglia and Edward Taylor

LONDON/FRANKFURT (Reuters) - General Motors and PSA Group are in advanced discussions to combine the French carmaker with GM's European Opel business, two sources with knowledge of the matter told Reuters on Tuesday.

If concluded successfully, the talks could lead to a merger of German-based Opel with PSA, the sources said. A deal may be announced within days, the sources said.

GM and PSA, the maker of Peugeot, Citroen and DS cars, already share production of SUVs and minivans, a relic of a previous attempt to forge a broader alliance that was unwound in 2013 with the sale of GM's stake in the French carmaker.

A PSA spokesman confirmed that the company was in talks with the U.S. carmaker to deepen their partnership.

"We are in discussions with Opel to expand upon our existing projects," Bertrand Blaise said. He declined further comment.

Spokespeople for Opel and the French government, which holds 14 percent of PSA, had no immediate comment. A spokesman for the Peugeot family, which holds a matching stake in the carmaker, was not immediately available.

(Additional reporting by Gilles Guillaume and Laurence Frost; Writing by Laurence Frost; Editing by Keith Weir)