Saab Loan Guarantee: EU will review as soon as possible

By Posted 27 Jan 2010, 13:12

Before Spyker can go ahead and purchase troubled Saab from General Motors, European Union regulators will need to have a close look at the deal. If they are happy with what they see, then Swedish authorities will be guarantee €400 million ($562 million) with a European Investment Bank loan for the carmaker.

82.8 percent of the guarantee amount will come under intense scrutiny by the commission to see if any state rules are being broken, this was according to a recent article from Reuters. The other 17.2% is said to be remunerated at market terms, this means that the European commission sees this as no aid.

This loan is seen as a positive sign that sportscar maker Spyker will acquire Saab, which we covered in a recent post. If all goes well, then the Danish carmaker will pay $74 million in cash to GM with the other $326 million coming from deferred shares for Saab.

Saab has been losing so much money over the past ten years, which is why GM put the brand up for sale. All parties’ involved hope that the sale goes through quick, we will keep you informed of the progress.