Sweden's Koenigsegg Agrees To Buy GM's Saab Automobile
16 Juni 2009 - 11:00AM
Dow Jones News
Swedish boutique supercar maker Koenigsegg Group AB has reached
an agreement to acquire General Motors Corp.'s (GMGMQ) Saab
Automobile AB unit for an undisclosed sum, the companies said
Tuesday.
"Closing this deal represents the best chance for Saab to emerge
a stronger company," said GM Europe President Carl-Peter
Forster.
The sale, expected to close by the end of the third quarter of
this year, includes an expected $600 million funding commitment
from the European Investment Bank guaranteed by the Swedish
government, the companies said in a statement.
"Today's announcement is great news for Saab's current and
future customers, dealers, suppliers and employees around the
globe," said Jan Ake Jonsson, managing director of Saab.
As part of the proposed transaction, GM will continue to provide
Saab with design and powertrain technology during a defined time
period.
Saab, part of GM since 2000, was granted bankruptcy protection
in Sweden Feb. 20 after GM said it wanted to offload the unit by
the year's end.
GM has been trying for months to find a buyer for Saab, and
people familiar with the situation said last week that a deal with
Koenigsegg could be reached soon.
The Swedish government said Thursday it had authorized its
National Debt Office to start formal discussions about the state
guaranteeing a EUR500 million ($700 million) loan that Saab has
sought from the European Investment Bank.
GM itself filed for protection from its creditors earlier this
month.
Last year, Saab sold a little less than 94,000 cars. It employs
about 3,400 workers, most at its main factory in Trollhattan in
southwestern Sweden.
Company Web site: www.saab.com
-By Ian Edmondson, Dow Jones Newswires; +46-8-5451-3094;
ian.edmondson@dowjones.com