Vauxhall sale delayed over competition law concerns

The plans to sell Vauxhall and Opel are being delayed by EU concerns that a buyout deal by Canadian auto parts firm, Magna, may be anti-competitive.The German government has defended the plans, stating that the sale was still on ‘on track’, the BBC reports. The European Commission warned the German government last week that its planned state aid for Opel might breach competition rules.According to Brussels, there are ‘significant indications’ that Berlin pledged the €4.5bn aid only if its preferred buyer for Opel was chosen.In response to the Competition Commission involvement, UK Business Secretary Lord Mandelson told the BBC: "We have advised the German government and Magna from the outset that the Commission would have to give clearance and that is why there had to be no real or apparent shortcomings in the process."However, Chris Preuss, GM's global vice-president for communications said: "Right now though we are working on a defined agreement with Magna and it's a complicated process with a lot of dialogue," adding, "there are a lot of discussions going on at the moment, and there's a lot of detail to be ironed out between the German government and the EU."

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