After months of negotiations and fears that the Saab brand was effectively doomed, General Motors and Spyker Cars NV have now confirmed that they have reached a binding agreement on the purchase of Saab Automobile AB.

Under the terms of the agreement, Spyker will form a new company called Saab Spyker Automobiles. Details of the sale, which is still subject to closing conditions, such as the receipt of applicable government and court approvals, are expected to be revealed in “due time” according to GM.

According to Nick Reilly, president of GM Europe, it has always been GM’s intention to find a solution for Saab to avoiding winding down the brand and the company will continue to support Saab and Spyker as they move forward.

Meanwhile, the Swedish government is reviewing the transaction, which is expected to close in mid February – wind down activities at Saab will be immediately suspended pending the close of the transaction.