Is it just us, or is there something unusually public about the auction of General Motors Corp.'s Adam Opel GmbH division? Perhaps it has something to do with the number of parties involved.
Here's the state of play as of Monday. In the lead to buy the unit is Canadian parts supplier Magna International Inc. (NYSE:MGA), partnering with Russia's OAO Sberbank (and perhaps with Russian automaker OAO Gaz, which may be making GM uneasy).
Brussels industrial investor RHJ International SA has also submitted a nonbinding offer.The government in Germany -- and as of Monday, probably Britain as well -- is willing to back the Magna bid,
according to a Deal Pipeline report (subscription required).
But wait: Here's Beijing Automotive Industry Holding Corp. with a nonbinding $923 million offer for a majority of Opel,
GM confirmed on July 4. The Chinese company says it will need less state aid than Magna will.
So what's BAIC? According to Automotive News Europe, it's a state-owned company eager to make it into the top ranks of China's auto industry. It has 11 wholly owned parts suppliers plus
a dozen parts joint ventures with global suppliers such as Delphi Corp. and Visteon Corp.
It also has a couple of auto JVs with foreign manufacturers: Beijing Hyundai Motor Co. and Beijing Benz-DaimlerChrysler Automotive Co.
BAIC is reportedly still a longshot to win Opel. But GM likes the idea of having another option, and who knows? Perhaps the Chinese company will yet be rewarded for providing one in this very public sale. -
Kenneth Klee
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BAIC was reputedly also a contender for the Hummer business but lost out to Sichuan Tengzhong Heavy Industrial Machinery.