PSA agrees to buy Opel in deal valuing GM unit at 2.2 bln euros

PARIS, March 6 (Reuters) - PSA Group has agreed to

buy European rival Opel from General Motors in a deal

valuing the business at 2.2 billion euros ($2.3 billion), the

companies said on Monday, creating a new regional car giant to

challenge market leader Volkswagen.

The maker of Peugeot and Citroen cars pledged to achieve 1.7

billion euros in cost savings from the acquisition by 2026 and

lift the Opel business and its UK Vauxhall brand to a 6 percent

operating margin in the same period.

($1 = 0.9432 euros)

(Reporting by Laurence Frost; Editing by Sudip Kar-Gupta)