MONTREAL (AFP) - Canada's Magna has bowed to a decision by US giant automaker General Motors to halt its purchase of GM's European division Opel, saying it would continue to support the two companies.

"We understand that the Board concluded that it was in GM's best interests to retain Opel, which plays an important role within GM's global organization," Magna's co-chief executive officer Siegfried Wolf said on Tuesday.

"We will continue to support Opel and GM in the challenges ahead and wish to thank everyone who supported the Opel restructuring process for their tireless efforts and dedication over the past several months."

GM on Tuesday scrapped plans to sell Opel, after having given preliminary approval to sell a 55 percent stake in the German-based company to Magna and its Russian partner Sberbank.