Ally Financial Completes Sale of Canadian Ops
The sale of Ally Financial’s Canadian auto finance arm, Ally Credit Canada Limited, and ResMor Trust to Royal Bank of Canada has been completed. 
According to today’s announcement, Ally (www.ally.com) received $4.1 billion for the operations in the form of a $3.7 billion payment at closing, and $400 million of dividends paid after the transaction was announced. The premium book value is approximately $620 million.
Ally announced the agreement to sell the Canadian operations in October 2012, the same month it agreed to unload its Mexican insurance subsidiary. An agreement to sell auto finance operations in Europe, Latin America, and a joint venture stake in China followed in November. Those remaining transactions are expected to be complete throughout the year.
The sales are part of plans to “further strengthen Ally and best position the company to return additional capital to the U.S. Treasury,” Ally Chief Executive Michael Carpenter said in a statement, adding that the sales would “enable Ally to further strengthen and grow our leading U.S.-based automotive services and direct banking franchises.”
Ally Financial offers financing products and services, including new- and used-vehicle inventory and consumer financing, leasing, inventory insurance, commercial loans and vehicle remarketing services. As of Sept. 30, 2012, Ally Financial had roughly $182 billion in assets.
