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GM Nears Deal for Opel With Belgium's RHJ

Joseph Woelfel

General Motors (GMGMQ Quote) is nearing a deal to sell a stake in its Opel division to Belgium industrial holding company RHJ International, a report says.

RHJ had improved its earlier bid for GM's European unit and GM was taking it very seriously, the Financial Times reports, citing a person close to the sale process. A memorandum of understanding could be signed within days.

The newspaper reports that GM's talks with Magna International(MGA Quote), the preferred bidder, have run into snags.

RHJ's new offer takes into account the political sensitivities over job losses in Germany, which is providing more than $2 billion of bridge financing to keep the carmaker afloat as GM goes through bankruptcy proceedings in the U.S., the Financial Times reports, citing the person close to the deal.

China's Beijing Automotive Industry Corp. also is expected to present an improved offer shortly for Opel, which includes Vauxhall in the U.K. But it entered the sale process later and hasn't progressed as far as RHJ and Magna, the newspaper notes.

In May, GM signed a memorandum of understanding for a sale of a majority stake in Opel with Canadian auto parts maker Magna.