Whatever the strategic aspects PSA Group buying GM’s European Opel-Vauxhall operations, market indications suggest confidence it will create value, notably on strength of PSA CEO Carlos Tavares’ ability to restructure a company, as in PSA’s own spectacular recovery. A highly sensitive subject: Do one and one make three? Or do they make just one and a half? It depends on what happens when two companies will combine. Synergies? Complementarity of trades upstream or downstream? New geographical locations? Analysts have raised their eyebrows about duplication of jobs and scales in a merger between two companies already very well established in Europe. They also do not see anything in terms of technology.
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