Ally Financial Completes Sale of Majority of European and Latin American Operations
Apr 2, 2013
DETROIT, April 2, 2013 -- Ally Financial Inc. (Ally) today announced that it completed the sale of the majority of its operations in Europe and Latin America to General Motors Financial Company, Inc. (GM Financial), a wholly-owned subsidiary of General Motors Co. Ally 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," said Ally Chief Executive Officer Michael A. Carpenter. "We remain committed to further advancing our strategic plans and best positioning Ally to repay the U.S. taxpayer's investment."
The transaction includes operations in Germany, the United Kingdom, Italy, Sweden, Switzerland, Austria, Belgium and the Netherlands, and Latin American operations in Mexico, Chile and Colombia. The sale of operations in France and Brazil, as well as the joint venture stake in China, are in process and expected to close in stages during 2013.
Ally has received approximately $6.7 billion in proceeds from the international transactions thus far, including from the Canadian transaction, representing over 70 percent of total proceeds expected from the sale of non-U.S. businesses.
About Ally Financial
Ally Financial Inc. is a leading automotive financial services company powered by a top direct banking franchise. Ally's automotive services business offers a full suite of financing products and services, including new and used vehicle inventory and consumer financing, leasing, inventory insurance, commercial loans and vehicle remarketing services. Ally Bank, the company's direct banking subsidiary and member FDIC, offers an array of deposit products, including certificates of deposit, savings accounts, money market accounts, IRA deposit products and interest checking. Ally's Commercial Finance unit provides financing to middle-market companies across a broad range of industries.
With approximately $182.4 billion in assets as of Dec. 31, 2012, Ally operates as a bank holding company. For more information, visit the Ally media site at http://media.ally.com or follow Ally on Twitter: @Ally.