EU approves PSA acquisition of Vauxhall and Opel from General Motors

The European Union has approved French car maker PSA's acquisition of Opel and British brand Vauxhall from General Motors.

The European Commission said it had given unconditional approval after it "concluded that the transaction would raise no competition concerns in the relevant markets".

After losing money in Europe for years, GM announced in March that it would sell Germany-based Opel and sister brand Vauxhall to PSA in a deal worth 2.2 billion euros (£1.9 billion).

The acquisition will make PSA the number two European car manufacturer after Germany's Volkswagen.

PSA strategy director Patrice Lucas described the decision as "an important step" and said the companies' teams are concentrating on fulfilling other conditions necessary to close the deal, expected before the end of the year.

The two companies said that while the decision approves the acquisition of the automotive business, EU competition authorities are still reviewing the planned acquisition of GM Financial's European operations by BNP Paribas and PSA.

A decision on that is expected in the year's second half, they said.