DETROIT - General Motors announced its acquisition of AmeriCredit Corp. will close effective Oct. 1, following the approval of AmeriCredit's stockholders on Sept. 29. The company will be renamed General Motors Financial Company, Inc. (GM Financial).
The acquisition will form the foundation of the company's plan to create an in-house financing arm and allow GM to provide consumers more vehicle financing options across the U.S. and Canada, according to GM. GM Financial will work closely with GM dealers to expand financing and leasing options, including a new regional lease program to be launched by the end of the first quarter of 2011.
AmeriCredit stockholders approved the all-cash transaction valued at approximately $3.5 billion on Sept. 29. The company filed a Certificate of Merger with the Texas Secretary of State on Sept. 30, effective Oct. 1.
The establishment of GM Financial will provide strategic capabilities to offer consumers a range of additional financing and lease options. Key partners, in particular Ally Financial, will continue to provide essential financing services, including dealer financing and prime retail financing.
With total assets of approximately $10 billion, GM said the acquisition poses minimal impact to its balance sheet, and does not change the company's objective of achieving strong investment grade status. GM Financial will maintain direct access to capital markets for its funding requirements. GM Financial results will be reported as a separate segment within GM's consolidated financial results and will continue to report its results as a separate SEC registrant.