Ally Financial Completes Sale of Majority of Latin American and European Operations
Ally Financial Inc. announced that it completed the sale of the majority of its operations in Europe and Latin America to General Motors Financial Company, Inc., a wholly-owned subsidiary of General Motors Co. Ally received approximately $2.6 billion in total proceeds, which is comprised of an approximately $2.4 billion payment at closing and $190 million in dividends paid prior to the closing.
"Completion of this transaction marks another major step in Ally's plans to further strengthen its financial profile going forward and to focus on its core, leading U.S.-based franchises," said Ally Chief Executive Officer Michael A. Carpenter. "We remain committed to further advancing our strategic plans and best positioning Ally to repay the U.S. taxpayer's investment."
The transaction includes operations in Germany, the United Kingdom, Italy, Sweden, Switzerland, Austria, Belgium and the Netherlands, and Latin American operations in Mexico, Chile and Colombia. The sale of operations in France and Brazil, as well as the joint venture stake in China, are in process and expected to close in stages during 2013.
Ally has received approximately $6.7 billion in proceeds from the international transactions thus far, including from the Canadian transaction, representing over 70 percent of total proceeds expected from the sale of non-U.S. businesses.