Qualified advisers answering your
Financial Questions
call 0800 092 1245

Lord Mandelson criticises Magna takeover

In a surprise development regarding the sale of GM Europe to Canadian group Magna, UK business secretary Lord Mandelson has today written to the European Union Competition Commissioner questioning the use of state aid to finance the offer. The European Union Competition Commissioner has responded with a confirmation that they are already looking into the situation and the contact from Lord Mandelson will have no bearing on the situation whatsoever.

It is no secret that the UK government has been loath to invest financially into the operation despite the fact that the German authorities have promised a €4.5 billion loan for Magna. We can assume from Lord Mandelson's letter to the EU that negotiations between the UK government and the German authorities, and the UK government and Magna have not gone well. This could put at serious risk the future viability of the Vauxhall operation in the UK and put thousands of jobs on the line.

It is unclear why Lord Mandelson has taken this particular path when only a few days ago many people expected face-to-face negotiations between Gordon Brown, Lord Mandelson and representatives from the Magna management. If they were looking to sit down face-to-face today, after Lord Mandelson's letter to the EU, it will be difficult to form a consensus opinion and consensus plans for the future.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details