General Motors bids to acquire Ally Financial’s international operations

Article by Anita Panait, on August 16, 2012

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.

Topics: gm, ally financial

If you liked the article, share on:

Comments

Recommended

McLaren has already shown some interest in electrifying their models. And initially, we thought that they will just use hybrid systems to use across their current lineup. Nevertheless, we have...
by - August 19, 2017
Fifty years after its glorious victory at the 24 Hours of Le Mans, Ford launches the 2018 Ford GT ’67 Heritage Edition at the 2017 Monterey Car Week. The red...
by - August 18, 2017
Hyundai has recently unveiled an unnamed pre-production model of its new fuel cell SUV. We don’t know what to call this model just yet, but sources say that this model...
by - August 18, 2017
This weekend at the 2017 Pebble Beach Concours d’Elegance, the BMW Z4 Concept will make its first public appearance. The good news is that we will finally have a real...
by - August 18, 2017
While Honda’s new 2018 HR-V will be rolling out at the dealerships with just a few updates, the company is certainly not giving up its spot as the best-selling vehicle...
by - August 18, 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