Ally Financial Completes Sale of Canadian Auto Finance Operation
Ally Financial Inc. announced that the sale of its Canadian auto finance operation, Ally Credit Canada Limited and ResMor Trust, to Royal Bank of Canada (RBC) has been completed. Ally received $4.1 billion USD for the business in the form of a $3.7 billion payment at closing and $400 million of dividends paid following the announcement of the transaction. Total proceeds represent a premium to book value of approximately $620 million.
In October 2012, Ally announced the agreement to sell its Canadian operations. Also in October, the company reached an agreement to sell its Mexican insurance subsidiary, followed by an agreement in November to sell its automotive finance operations in Europe, Latin America, and a joint venture stake in China. The remaining transactions are expected to close throughout 2013.