Reports: PSA Deal to Buy Opel Could Come on Monday

PSA Group may be ready to announce as early as Monday that it has a deal to buy General Motors Co.’s Opel unit, according to media reports.

Sources tell Reuters that talks between the two carmakers are moving smoothly and that the gap is narrowing over who will pay for an estimated $9 billion in underfunded Opel pension liabilities. The sources say PSA has advised GM it can’t accept a deal in which it must pay the bulk of the deficit.

Bloomberg News sources say the two sides plan to continue negotiations through the weekend in hopes to being able to announce a deal on Monday. PSA has indicated the deal also will hinge upon its need to eventually find €2 billion ($2.1 billion) in annual savings. Analysts say that will mean capacity cuts and lower overhead through integrated purchasing and shared parts.

Both news services say the companies are moving closer to accord on GM’s demand that PSA not sell current Opel models overseas until the French company can replace GM’s technological content with its own in next-generation vehicles.