Toronto-Dominion Bank in talks to buy Chrysler Financial

Article by Christian A., on December 7, 2010

Insiders say that an agreement may be reached this week for Toronto-Dominion Bank, Canada's second-largest bank, to acquire Chrysler Financial Corp., the auto-loan company owned by Cerberus Capital Management LP.

One of these sources said that Chrysler Financial may sell for nearly $6 billion to $7 billion, which is the company's book value (computed as assets minus liabilities).

Nonetheless, the sources admitted that the talks might not proceed at all and that there are other potential buyers that are in discussions with Cerberus.

One source also said that the deal might be entered next week. They say that it’s likely that Cerberus will be able to recoup all of its investment in Chrysler Financial and give back some of the money to investors.

It has also been reported that Chrysler Financial, based in suburban Detroit, is composed mostly of old car and truck loans that consumers are still continuing to pay, along with a platform and technology that a buyer could use to begin an auto-lending business.

The Wall Street Journal reported that ING Groep NV is one of those who are in talks with Cerberus. Toronto-Dominion has spent over $19.9 billion in the last six years for the U.S. expansion. [via autonews - sub. required]

If you liked the article, share on:

Comments

Recommended

J.D. Power has officially released the 2017 Vehicle Dependability Study, an annual list of the most dependable brands in the auto industry. Once again coming on top is Lexus, the...
by - February 26, 2017
Citroen revealed that its entry to the Chinese market is moving forward with the planned release of the new generation C5. While still on sale on this part of the...
by - February 26, 2017
There is definitely a second-generation Super Series from McLaren. Even in camouflaged form, it is simply incredible. But while we still don’t have the full data on how truly dynamic...
by - February 25, 2017
A lot of fans are excited with the news that Porsche could be unveiling a performance version of its Panamera 4 E-Hybrid plug-in hybrid during the 2017 Geneva Auto Show. ...
by - February 25, 2017
Tesla is finally setting a more “definite” schedule with regards to the official launch of the Tesla Model 3 electric car. A “limited production” is said to be slated to...
by - February 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries