Britain will not accept Magna’s takeover of Vauxhall/Opel unless shortcomings identified in due diligence report are addressed.
A PwC report had identified “shortcomings” in Magna’s plan and the government was not willing to sign off the deal unless these were rectified.
“Those need to be addressed,” said Mandelson. “If there are not to be negative consequences for Vauxhall, the plan needs to be redressed in certain ways.”
The main point of contention in the deal is believed to be the distribution of production among European car plants and the consequent job losses.
Germany is due to supply most of the loan guarantees to fund the Magna deal, but Britain is expected to supply 400 million euro (£368m) in guarantees of its own.
Before signing off the deal, however, Britain wants assurances on the fate of Vauxhall’s two UK plants, in Luton and Ellesmere Port, which employ about 5,000 workers between them.
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Re: Britain questions Magna deal
If i remember, Mandelson said he was going to to arrange a multi million
pound loan for Jaguar.
After,five or six months was it,Jaguar had still not had the loan,it turned out
to be little more than hot air spin and lies.
I think this 'loan' will end up the same!
Also if he cares that much why was he not at the talks with Magna.?