M&A

4 November, 2009

EU expects Opel restructuring on economic basis

BRUSSELS, Nov 4 (Reuters) - General Motors' [GM.UL] new restructuring plan for its European arm, Opel, should be based on solid economic grounds, European Union competition regulators said on Wednesday.

The plan should ensure Opel's long-term viability and offer sustainable jobs for its workers, the European Commission said in a statement. It said it would verify that any financial aid given by any EU countries to Opel complied with EU rules.

General Motors scrapped a long-expected sale of Opel on Tuesday and said it would keep the company, attributing the move to improving business conditions and the strategic importance of Opel.

(Reporting by Foo Yun Chee, editing by Timothy Heritage)

Source: http://www.reuters.com