Thaindian News

DETROIT (BNO NEWS) — General Motors (GM) on Tuesday struck a binding agreement to sell Saab to Spyker Cars N.V., a small Dutch maker of high-end sports cars. The deal saves Saab from what seemed to be certain extinction after other bids failed.

The announcement of the deal follows days of speculation about a possible deal between the two companies. Earlier on Tuesday, the Dutch financial regulator said it had suspended all trading in shares of Spyker Cars pending a press statement.

“Today’s announcement is great news for Saab employees, dealers and suppliers, great news for millions of Saab customers and fans worldwide, and great news for GM,” said John Smith, General Motors vice president for corporate planning and alliances. “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.”

As part of the agreement, Spyker intends to form a new company, Saab Spyker Automobiles, which will carry the Saab brand forward. The sale, however, will still be subject to customary closing conditions, including receipt of applicable regulatory, governmental and court approvals.

Financial terms and conditions were not immediately released, but General Motors said it would release those details in “due time.”

The Swedish government is at present reviewing the transaction and the related request for guarantees of a Saab Automobile loan that has been requested from the European Investment Bank. Assuming quick action, the transaction is expected to close in mid-February, and previously announced wind down activities at Saab will be immediately suspended, pending the close of the transaction.

“Throughout the negotiations, GM has always had the hope to find a solution for Saab that would avoid a wind down of the brand,” Nick Reilly, president of GM Europe, said. “We’ve worked with many parties over the past year, including governments and investors, and I’m very pleased that we could come to such a good conclusion, one that preserves jobs in Sweden and elsewhere. GM will continue to support Saab and Spyker on their way forward.”