Magna International Inc. has been chosen by Germany as the buyer for General Motors Opel.

Magna International Inc. has been chosen by German Chancellor Angela Merkel’s government as the buyer for General Motors Corp.’s Opel and confirmed a financing plan aimed at helping the money-losing unit prevent insolvency.

Finance Minister Peer Steinbrueck told reporters at 2:13 a.m. in Berlin after a meeting with leaders including Merkel that the Canadian car-parts maker, Magna that’s competing with Fiat SpA in its bid for Opel, will invest in the Russelsheim, Germany-based carmaker. Germany will provide a 1.5 billion-Euro ($2.1 billion) bridge loan to keep Opel afloat. Opel will be placed under a trust later today, shielding it from a probably GM bankruptcy next week.

Peer Steinbrueck also said that they don’t take the decision lightly and the federal and state representatives are aware that there are some risks and they have a high interest in maintaining employment at all four Opel sites.

GM is selling a majority ventures in Opel, including the Vauxhall brand in the U.K., as part of a worldwide restructuring before a U.S. government-imposed June 1 deadline to restructure. Germany, which led the search for an investor, has a say because of the Detroit carmaker’s request for loan guarantees.

In front of Merkel there’s a national election on Sept. 27, and he is under pressure from lawmakers and labor unions to save the 25,000 German motors Opel jobs out of GM Europe’s 55,000 positions.