Now that the acquisition of Ally Credit Canada, the Canadian auto finance arm of Ally Financial, is official, Royal Bank of Canada is gearing up to integrate operations — leaving some employees’ jobs hanging in the balance.
RBC’s $1.4-billion acquisition of Ally Credit Canada and ResMor Trust, which offers deposits via independent brokers and other products, were completed earlier this month following regulatory approval.
RBC will integrate Ally’s auto financing business into its own auto unit. Prior to the sale, Ally Financial’s Canadian arm provided financing to roughly 600 dealerships across the country. As of October 2012, its consumer business had nearly 450,000 loans outstanding. An RBC spokesman would not say if Ally employees would be laid off or if existing offices would close due to the completion of the acquisition.
In recent months, Ally Financial has sold a host of international operations to repay its $17.2 billion U.S. government bailout.
