General Motors is offering to acquire the international operations of Ally Financial Inc., barely two months after GM chief executive expressed his intention to acquire the business. According to a filing with the US Securities and Exchange Commission, GM's lending arm, GM Financial, has made a bid to acquire Ally's international operations in July.
GM said in the filing that GM Financial and a number of third parties are in the preliminary stages of the “bid process investigation.” Analysts remarked that Ally’s international assets could attract bids of between $2 billion and $4 billion. According to Matthew Stover, an analyst at Guggenheim Securities, it is a good thing to control financial services companies since they tend to be very profitable.
He quipped that from an investment viewpoint, financial services firms could be good businesses and from a competitive viewpoint, these firms could help companies become more flexible in the sales market.
Akerson told Bloomberg in an interview in May that he is interested in acquiring the international operations of Ally Financial, which includes businesses in Canada, Mexico, Europe and Latin America. If successful in its bid, the acquisition could help GM improve its sales in the said regions by enhancing access to financing for its customers.
GM said in its SEC filing that the company "could expand its operations materially in international markets." The carmaker, however, said that there is no assurance that it would win the bid for the Ally unit. Meanwhile, an Ally spokeswoman told Automotive News that around 30 different parties have already expressed interest in acquiring the company’s international operations.