French takeover of future Holden Commodore's maker a 'done deal': report

THE next Holden Commodore could be in French hands by as early as Monday, with media reports saying a PSA Group takeover of GM's European division, Opel, is about to be confirmed.

Reuters reported exclusively last night that two independent sources had confirmed the PSA Group board -- which controls French carmakers Citroen and Peugeot -- had given its approval to a takeover after settling on how the loss-making European arm of US carmaker General Motors would be broken up between the two.

Details of the talks between the two surfaced last month. It includes the takeover of Vauxhall, the British equivalent of Holden and one of the main driving forces behind GM's global right-hand drive conversion projects.

According to Reuters, the deal struck between the two carmakers includes "non-compete" agreements that will block Opel's new owners from competing against Chevrolet-badged cars in regions including China and "other overseas markets".

What the deal struck means for Australia isn't yet clear -- Holden already sources the Opel-built Astra small hatchback as a cornerstone of its passenger car line-up, and from next year it plans to add the German-made Opel Insignia to its showrooms, rebadged as a Commodore.

Holden told Wheels this morning that it would not comment on speculation.

Reuters says the carmakers had "narrowed differences in about $US10 billion ($A13 billion) in Opel pension liabilities and other issues". Opel's financial position is believed to have been a contentious part of takeover talks -- GM's European carmaking business last reported a profit in 1999.

Holden plans to source the Commodore-badged Insignia from Opel's Russelsheim, Germany production line, the same production line that provided the Opel-badged Insignia sent here as part of the failed 2012 attempt to introduce the European brand as a premium alternative to Holden's Korean-sourced cheap cars.

PSA Group has already met with Opel representatives, framing the takeover as a potential "rebound of the company and its iconic brands".

It says the partnership will create a "European Champion with French-German roots".

Opel's latest statement on the takeover talks still claims "there can be no assurance that an agreement will be reached".