LATEST NEWS

Stellantis Prepares to Pay GM Close to $1 Billion to Buy Back Shares From 2017

Stellantis Prepares to Pay GM Close to $1 Billion to Buy Back Shares From 2017 Recently it was reported that Stellantis will pay nearly $1 billion to buy back shares in its company that GM acquired in 2017. GM received these shares as part of a deal between Peugeot SA and GM that included the previous purchase of European brands Opel and Vauxhall. The agreement affects many shareholders in both companies. But what exactly does it include?

Here’s how the original GM purchase works

Stellantis Prepares to Pay GM Close to $1 Billion to Buy Back Shares From 2017

According to the agreement between GM and Peugeot, where the latter was to acquire Opel and Vauxhall in 2017, GM also received ownership guarantees in the two companies. According to Peugeot, Peugeot has agreed to pay a whopping $2.3 billion to General Motors to complete the purchase.

The purchase would allow the company to create “a new European car giant to challenge the market leader, Volkswagen.” Unfortunately, this dream has not yet become a reality, and sales of brands such as Opel are still far behind those of many of their competitors.

Stellantis to buy back stock from General Motors

In 2021, Peugeot merged with American automaker Fiat Chrysler to form the world’s fourth largest car company, now known as Stellantis. As explained at the time, this manufacturing group from all over the world was formed under one roof.

In the recently announced deal between Stellantis and GM, Stellantis paid €923,247,678 ($923,293,840 at current exchange rates) to GM in September to buy back shares that its predecessor gave up in 2017. For that amount Mega Stock, Stellantis has redeemed 69.1 million shares of its stock of General Motors stock. In addition, Stellantis agreed to grant GM 1.2 million common shares in Faurecia and pay $130 million in cash as a dividend.

Stellantis Prepares to Pay GM Close to $1 Billion to Buy Back Shares From 2017

Opel has never really made headway in the US market, but believe it or not, one of them comes from Opel/Vauxhall. We are talking about the Opel Astra, which has been available in European markets since 1991. It is one of the few cars produced by General Motors that has had success outside the American car market. One of the selling points that makes the Astra particularly attractive to European drivers is its fuel economy and ease of handling.

Another popular offering from Opel/Vauxhall is the Corsa which, like the Astra, is not available in the US but is very popular in Europe. It’s been on the market there since 1983. The compact car makes it easy to move around town and also easy to carry in a pocket, thanks to its excellent fuel economy. The combination of sportiness and practicality makes it the most popular Opel ever produced.

Stellantis Prepares to Pay GM Close to $1 Billion to Buy Back Shares From 2017

Finally, we’d be remiss if we didn’t mention the Opel Insignia, a station wagon that inspired. Despite its relative popularity in Europe, it was recently announced that General Motors is planning to discontinue the Insignia. Regal was also discontinued in 2020, as part of GM’s move away from producing sedans.

It will be interesting to see where the two giant auto manufacturers, Stellantis and General Motors, take their production efforts in the future. As consumers adapt to the increasing focus on electric vehicles, some models will have to give way to newer technology. The financial matters involved will still be complicated, as evidenced by the back-and-forth stock trading between these companies.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button