Ally raised $611 million from sale of Brazil operations to GM Financial

Article by Christian A., on October 3, 2013

The sale of Ally Financial’s Brazil operation to General Motors Financial was completed for about $611 million. In a statement last Tuesday, Ally CEO Michael Carpenter said that the sales of the bank's international operations are almost complete and that the firm has gotten proceeds of about $8.3 billion. Ally has gotten around 90% of the total proceeds anticipated from selling its non-U.S. firms.

Right up until 2006, Ally (which used to be known as GMAC Inc.) was owned by General Motors Corp. But then 51% was acquired by private equity firm Cerberus Capital Management LP. During the economic crisis, the holding was later diluted by the U.S. bailout valued at $17.2 billion.

Under the terms of the bailout, the U.S. Treasury got a 74% stake in the company and it was subsequently renamed as Ally. Carpenter said that Ally is currently in a “much stronger position” to reinforce its franchises in the country and boost efforts to repay the U.S. government. Last April, Ally received $2.6 billion in exchange for the majority of its overseas operations in Europe and Latin America it gave to GM Financial.

It sold its operations in Germany, United Kingdom, France, Portugal, Italy, Sweden, Switzerland, Austria, Belgium, the Netherlands, Chile, Colombia and Mexico. In addition, the international acquisitions, unveiled in November 2012, cover a stake in a joint venture in China, which will proceed as soon as it gets the necessary government approvals.

GM Financial believes that the deal will be closed in 2014. GM Financial said that when the deal is fully completed, it will approximately double its size to $30 billion in terms of assets. As of June 30, 2013, Ally claimed to have assets of $150.6 billion.

If you liked the article, share on:

Comments

Recommended

Dubai is one of the few countries where expensive cars are the norm, many of which are specially modified as well. And this just in: Bentley has debuted the new...
by - November 21, 2017
The 2018 Jaguar XEL with its stretched-out wheelbase and longer doors is the newest addition to the growing list of premium sedans in China---joining the ranks of Mercedes-Benz C-Class L,...
by - November 21, 2017
Honda this week announced that its all-new 2018 Clarity Plug-in Hybrid will arrive at US dealerships with a starting price of $33,400 beginning on the first of December. Because the...
by - November 21, 2017
Lamborghini had been expected to refresh its entry-level model – the Lamborghini Huracan – in late 2018 or early 2019. But here is some good news for fans of the...
by - November 20, 2017
The Chevrolet Corvette will be turning 65 years old in 2018, and as part of the celebrations, the brand is introducing a special edition C7 – the Chevrolet Corvette Carbon...
by - November 19, 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