Financial Times FT.com

Brussels to pore over Magna deal

By Daniel Schäfer and John Reed in Frankfurt and Stanley Pignal and Nikki Tait in Brussels

Published: September 14 2009 23:28 | Last updated: September 14 2009 23:28

The European Commission is to scrutinise German backing for the takeover of General Motors’ European operations amid concern that planned job cuts could be influenced by political factors, hitting plants in the UK and Belgium disproportionately hard.

Signalling that she would take a tough line on the issue, Neelie Kroes, EU competition commissioner, said she would look at “the entire context” of €4.5bn (£3.8bn) in loan guarantees provided mainly by the German government to back the deal by Magna, the Canadian car parts supplier, to buy a 55 per cent stake in Opel and its UK business Vauxhall.

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