GM Financial Finalizes Purchase of Most International Units from Ally Financial
April 03, 2013
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DETROIT and FORT WORTH, Texas — General Motors Financial
announced this week that it has completed the acquisition of equity interests
in the top-level holding companies that comprise substantially all of Ally
Financial's auto finance and financial services business in Europe and Latin
Officials said the purchase includes operations in Germany, United Kingdom, Italy, Sweden, Switzerland, Austria, Belgium, the Netherlands, Chile, Colombia and Mexico.
"Completing the purchase of these operating units is an important step in ensuring the availability of competitive financing for GM customers and dealers worldwide. Having a strong international auto finance capability will allow us to expand our support of GM's global growth strategy beyond the U.S. and Canada," GM Financial president and chief executive officer Dan Berce said.
Berce highlighted the international operations will continue to offer a full range of retail and lease financing, dealer loans and related services. He emphasized the international leadership team and employees will transition to GM Financial with no disruption to the service provided to GM customers and stakeholders.
"The strength of our existing relationships with GM dealers in Europe and Latin America will be further enhanced as their captive auto finance company in these regions," said Mark Bole, president of international operations for GM Financial.
"Through this acquisition, the opportunities to enhance our product offerings and generate incremental sales for GM have increased significantly," Bole added.
The purchase agreements between GM Financial and Ally — first announced last November — also include international operations in France, Brazil and China. GM Financial indicated those deals are pending certain regulatory and other approvals and are expected to close later in the year.
Ally said it received approximately $2.6 billion in total proceeds, which is comprised of an approximately $2.4 billion payment at closing and $190 million in dividends paid prior to the closing.
"Completion of this transaction marks another major step in Ally's plans to further strengthen its financial profile going forward and to focus on its core, leading U.S.-based franchises," Ally CEO Michael Carpenter said.
"We remain committed to further advancing our strategic plans and best positioning Ally to repay the U.S. taxpayer's investment," Carpenter continued.
Ally noted that it has received approximately $6.7 billion in proceeds from the international transactions thus far, including from the Canadian transaction, representing more than 70 percent of total proceeds expected from the sale of non-U.S. businesses.
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