Global Times - GM reaches agreement to sell Saab to Spyker

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GM reaches agreement to sell Saab to Spyker

Source: Xinhua
[09:37 January 27 2010]
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Spyker Chief Executive Victor Muller (R) attends a press conference with Saab CEO Jan-Aake Jonsson after they announced that Spyker would buy Saab from General Motors in a deal worth $400 million in Stockholm January 26, 2010. Photo: Xinhua/AFP

General Motors Tuesday announced that it reached a binding agreement with the Dutch Spyker Cars NV on the purchase of Saab Automobile AB.

"General Motors, Spyker Cars, and the Swedish government worked very hard and creatively for a deal that would secure a sustainable future for this unique and iconic brand, and we're all happy for the positive outcome," said John Smith, GM vice president for corporate planning and alliances.

Swedish Minister for Industry Maud Olofsson confirmed the news at a press conference later Tuesday in the Swedish capital city Stockholm.

"That is a deep involvement of the government with the GM Europe," said Olofsson.

She also said the Swedish government had decided to give the guarantee for Spyker to get the 400 million euros ( about $568 million) loans from the European Investment Bank (EIB) . Olofsson deemed that there was no problem for EIB to give the approval to it.

Spyker Chief Executive Victor Muller (L) shakes hands with Saab CEO Jan-Aake Jonsson after they announced that Spyker would buy Saab from General Motors in a deal worth $400 million in Stockholm January 26, 2010. Photo: Xinhua/AFP

"The money is not used for running the company but for development projects which will lead the future of Saab to be greener and more environmentally friendly," she said.

According to the agreement, Spyker intends to form a new company, Saab Spyker Automobiles, which will carry the Saab brand forward. The sale will be subject to customary closing conditions, including receipt of applicable regulatory, governmental and court approvals. Other terms and conditions specific to the sale will be disclosed in due time.

The transaction is expected to close in mid-February, and previously announced wind down activities at Saab will be immediately suspended, according to the statement.