French carmaker PSA says it is considering taking over General Motors' (GM) European Opel business.
PSA - which makes Peugeot, Citroen and DS cars - and GM already share production of SUVs and minivans.
The French government holds a 14% stake in PSA, as do the Peugeot family and Chinese firm Dongfeng Motor.
Any deal would include Opel's UK affiliate Vauxhall, and create a carmaker with about 16% of the European market.
Vauxhall employs about 35,000 people in the UK, including 4,500 working at its manufacturing plants in Ellesmere Port and Luton, and at its warehouse and head office in Luton.
Its customer centre in Luton employs 300 people, and 120 people work at its On Star headquarters. Another 23,000 work in its retail network and 7,000 in its UK supply chain.
'Potential acquisition'
Shares in the maker of Peugeot cars were 4.2% higher in Paris in afternoon trading.
Questions
1. What types of merger are there?
2. Why do companies merge?
3. Why might the CMA step in?
4. In the artcile above what are the main reasons for the merger?
