Transport Topics Online  
The Newspaper of Trucking and Freight Transportation
Welcome  Guest  Log In         
11/26/2012 3:00:00 PM Write a Letter to the Editor Write a letter to the Editor

GM Pays $4.2 Billion for Global Finance Operation

General Motors Co. agreed to purchase the international auto financing operations of Ally Financial Inc. in a $4.2 billion deal that will help the manufacturer expand outside North America, Bloomberg reported.

The transaction includes operations in Brazil, Mexico, Colombia, Chile, Germany, the United Kingdom, France, Italy, Belgium, the Netherlands, Sweden, Switzerland and Austria, GM said in a statement. The deal also includes Ally’s 40% interest in a Chinese joint venture.

The purchase price represents an approximately $550 million premium to their book value, Bloomberg said. As result of the acquisition, assets held by the the automaker’s GM Financial division, which will operate the Ally business, will double to approximately $33 billion and its liabilities, including consolidated debt, will increase to about $27 billion compared with about $12 billion today, Bloomberg said. To fund the purchase, GM expects to contribute approximately $2 billion in cash to GM Financial, Bloomberg said. 

Ally was formerly known as GMAC Inc., which GM owned until 2006. That year, the automaker sold a majority stake in the financial division to private equity group Cerberus Capital Management LP.

By Light & Medium Truck

Follow Transport Topics on Subscribe to get up to the minute news briefs and more from our feeds. RSS Twitter Twitter Facebook Facebook

© 2012, Transport Topics, American Trucking Associations Inc.
Reproduction, redistribution, display or rebroadcast by any means without written permission is prohibited.




Follow Us


This free daily newsletter delivers the latest headlines.

TT Executive Suite
This subscriber-only newsletter program tailors your news.



© American Trucking Associations, Inc., All Rights Reserved Privacy Statement