General Motors has sold a 55 per cent stake in Vauxhall and Opel to Magna International and its Russian banking partner Sberbank.
GM will retain 35 per cent of the company, while the remaining ten per cent will be held by an Opel employee trust fund.
“The hard work over the past two weeks to clarify open issues and resolve details in the German financial package brought GM and its board of directors to recommend Magna/Sberbank,” GM CEO Fritz Henderson said in a statement.
He added that GM will “continue to closely collaborate with Opel and Vauxhall to develop and produce more great cars, such as the new Insignia and the new Astra."
UK business minister Pat McFadden said the government would continue talks on the future of the 4700 Vauxhall staff with the new owners.
"Our objective throughout has been to get the best possible outcome for the Vauxhall workforce and the production plants in the UK," McFadden said.
"We have been in close contact with all parties throughout, including GM in the US and Europe, and all the potential bidders."
He said Magna had given a commitment to continuing production at both Vauxhall's plants in Britain.
"We will now continue our discussions with Magna. They have told us of their commitment to continuing production at both Ellesmere Port and Luton and we will work to make sure we get the best possible outcome for the UK," he said.
Unite, the country's largest trade union, welcomed the end to the uncertainty over Vauxhall's future but said workers here must be treated fairly.
Britain has the third largest GM workforce in Europe after Germany and Spain.
"One of the alternatives could have been the unthinkable position of liquidation," said Unite's joint secretary, Tony Woodley.
"Nevertheless, with Magna as the new owner, we need to make sure that British plants and people are not treated disproportionately during the re-structuring that will take place."
However, the sale is said to have only been agreed if Magna can reach certain conditions, which have not been revealed. In addition, the deal must be approved by the relevant labour unions and the German government must agree a financing package.
It is unlikely Magna will know if it can meet these demands until after the German elections, which take place on 27 September.
GM signed an initial agreement in May to sell a majority stake in Opel to a Russian-backed consortium led by Magna.
But that deal fell apart as senior GM executives became increasing worried that Opel under Magna could transfer important technological expertise to the supplier's industrial partner GAZ, Russia's second-largest domestic carmaker and a rival to GM's successful Chevrolet brand in Russia.
Gm was also concerned at selling Opel's Russelsheim operations in Germany, where it has developed many of its cars for US sale.