Peugeot maker’s shareholders approve buyout of GM’s Opel

May 10, 2017 GMT

PARIS (AP) — Shareholders of Peugeot’s parent company PSA Group have agreed to the financial plans for buying General Motors’ European operations, including the Opel and Vauxhall brands.

The French carmaker said in a statement that shareholders Wednesday “approved the measures of proposed financing” for the $2.3 billion acquisition announced in March.

PSA chief Carlos Tavares told the shareholder meeting that he expects Germany-based Opel to see more losses in the coming year. It hasn’t made a full-year profit since 1999.

The sale also includes GM’s European auto financing arm, which goes to a joint venture between PSA and French bank BNP Paribas. GM has to keep $6.5 billion in unfunded pension obligations.

The sale will make PSA, which makes Peugeot and Citroen cars, Europe’s No. 2 automaker after Volkswagen.