German Economic Minister Karl-Theodor zu Guttenberg said Thursday he doesn't expect the European Union to block the government-backed takeover of General Motor Co.'s European arm, Adam Opel GmbH, by Magna International (MGA).

"We're not expecting a veto from the European Commission," he said, speaking at the international auto show in Frankfurt. "I'm hoping for a good European solution," he said.

The commission Wednesday repeated its warning to Germany that it will carefully scrutinize any state aid provided to Opel to ensure it follows the E.U.'s strict rules on state aid.

The Financial Times reported earlier Thursday that the U.K. has written to Europe's competition chief challenging plans by auto parts maker Magna to buy Opel. According to the newspaper, U.K. Business Secretary Peter Mandelson said the Canadian company's plans for restructuring Opel were too expensive and susceptible to "political intervention."

At present, it isn't clear whether the E.U. could actually prevent the state-aid backed takeover of Opel. Guttenberg said this will depend on the official form in which this state aid will be given.

According to a government document reviewed by Dow Jones Newswires Tuesday, Germany doesn't need separate approval from the commission to grant state aid to Opel, as this would be part of a temporary framework agreement to support companies during the economic crisis.

But the German government is still aiming for a basic agreement with the European Union's executive.

The deal is expected to close by the end of November and comprises a total investment of EUR5 billion, including EUR4.5 billion in state-backed financing until 2015.

Magna and Sberbank are providing EUR500 million equity, including EUR50 million through a convertible bond.

It is still unclear whether the EUR4.5 billion in state-backed financing will be provided in guarantees or in the form of a new loan.

-By Nico Schmidt, Dow Jones Newswires; +49 69 29725 500; djnews.frankfurt@dowjones.com