RHJ International has posted a 42 per cent annual loss
2 July 2009

RHJ International, the Belgian private equity firm reported to be bidding for Opel/Vauxhall, has posted a full-year loss of one billion Euros (£850 million), sparking doubts over its ability to buy a stake in the German manufacturer from GM.

Its equity portfolio suffered a 43 per cent loss in value compared to this time last year. Analysts are now saying that RHJ is in no fit position to buy any stake in Opel, despites its perceived good intentions.

An industry source said: “RHJ can't acquire a majority stake or a large minority in Opel, because they simply don't have the cash. RHJ doesn't even come close.”

Vauxhall/Opel sale in trouble

The source suggested that RHJ may still secure a small stake to support its automotive subsidiaries including Belgian parts maker Honsel International, but a majority one was now out of the question.

See all the latest Vauxhall reviews, news and video

RHJ said it has 447 million Euros (£380 million) available for investment in new assets. By contrast, the deal GM has agreed with Magna and Sberbank would see the two firms invest between 500 and 700 million Euros (£430 - £600 million).

An RHJ statement, which did not mention Opel, said: "The company's automotive assets suffered the effects of severe and rapid volume declines.

“Our cash position continues to be a key strength as we review new investment opportunities and possible expansion into new strategic areas including, but not limited to, financial services in Europe.”

Mark Tisshaw

Twitter - follow autocar.co.uk

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • Volkswagen T-Roc TDI
    First Drive
    19 October 2017
    Volkswagen's new compact crossover has the looks, the engineering and the build quality to be a resounding success, but not with this diesel engine
  • BMW M550i
    First Drive
    19 October 2017
    The all-paw M550i is a fast, effortless mile-muncher, but there's a reason why it won't be sold in the UK
  • Volvo V90
    First Drive
    19 October 2017
    The Volvo V90 is a big estate ploughing its own furrow. We’re about to see if it is refreshing or misguided
  • Kia Stonic
    First Drive
    18 October 2017
    Handsome entrant into the bulging small crossover market has a strong engine and agile handling, but isn’t as comfortable or complete as rivals
  • Hyundai Kona
    First Drive
    18 October 2017
    Hyundai's funky-looking Kona crossover with a peppy three-cylinder engine makes all the right noises for the car to be a success in a crowded segment