The Federal Chancellor gets her way just in time for tough election she is facing this month.

General Motors has just announced that its Board of Directors supports a bid from the consortium of Magna International Inc. and Sberbank to buy a majority stake in its European Opel/Vauxhall operations.

The other finalist in the bidding, Belgian-based private equity firm RHJ International, was not favored by the German government since it thinks massive job losses will result.

In a statement the GM says, “several key issues will be finalized over the next few weeks to secure the binding agreements, including the written support of the labor unions to support the deal with the necessary cost restructuring for viability and the finalization of a definitive financing package from the German government.”

After months of negotiations with numerous special interest groups, labor unions and European governments,  GM is now saying, “definitive agreements should be ready to sign within a few weeks, with closing to follow within the next few months.”

Under the  tentative deal, Magna/Sberbank will purchase 55% of the New Opel. GM will hold a 35% stake, and employees will be getting a 10% share.

Several contentious issues were not covered in the statement, including the role of Chevrolet in Russia and expanding Asian markets, as well as the intellectual property rights for the small car engineering that Opel currently provides for GM.

Magna released this statement: “The Consortium is pleased that its plan for Opel has satisfied General Motors. Together with General Motors, Opel employees and Opel dealers, the Consortium will now work hard to lead Opel into a successful future,” said Siegfried Wolf, Magna’s Co-Chief Executive Officer and Herman Gref, Chairman of the Board and Chief Executive Officer of Sberbank.

 “Additionally, the Consortium is grateful to General Motors for the constructive atmosphere during the negotiations and to those parties which have provided their support for the Consortium’s business plan, including in particular the German government,” Gref said.

Fritz Henderson, GM President and CEO said, “The hard work over the past two weeks to clarify open issues and resolve details in the German financial package brought GM and its Board of Directors to recommend Magna/Sberbank.”

“We thank all parties involved in the intensive process of the last few months — especially the German government — for their continued support that enables this new venture. I’d also like to thank the Opel and Vauxhall customers for their continued loyalty. GM will continue to closely collaborate with Opel and Vauxhall to develop and produce more great cars, such as the new Insignia and the new Astra,” Henderson added.