GM confirmed today that it intends to exercise its option under the GM/Delphi Master Restructuring Agreement to acquire the Delphi global steering business. The option covers Delphi global Steering business including employees, facilities, products, technical capability and intellectual property.
The business will be operated as a stand-alone business much as it is today and, at least in the near term, will be held in a wholly owned subsidiary of GM. A diverse customer base and the ability to self-fund the operations will be essential to the business' long-term future. To achieve these goals, new business opportunities and technologies will continue to be aggressively pursued.
As details of the transaction are finalized, information will first be communicated to the affected employees and customers. GM expects the transaction to be completed in the second quarter of 2009. Terms of the exercise agreement are not being disclosed at this time.
In addition, GM has agreed to increase its advance agreement commitments from $300 million to $450 million to support Delphi's near-term liquidity needs, effective March 24, 2009. The Delphi Steering transaction and increase in advance commitments are subject to final approval by the GM Board of Directors, U.S. Treasury and Bankruptcy Court.
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