Ally Financial Completes European, Latin American Ops Sale to GM Financial

Ally Financial announced today it has finalized the sale of most of its European and Latin American operations to General Motors Financial Company. Ally obtained roughly $2.6 billion in total proceeds, receiving approximately $2.4 billion at closing and $190 million in dividends before.

The deal between Ally and the wholly-owned subsidiary of General Motors Co. includes operations in Germany, the United Kingdom, Italy, Sweden, Switzerland, Austria, Belgium, the Netherlands, Mexico, Chile, and Colombia. The sale of Ally arms in France, Brazil, and China are in the pipeline, and are expected to be finalized in phases throughout the year.

To date, the sale of Ally’s international arms, including the Canadian transaction finalized in February, have generated nearly $6.7 billion. That accounts for more than 70% of total proceeds anticipated from the sale of the lender’s non-U.S. business.

Ally Financial offers auto financing products and services, including new- and used-vehicle inventory and consumer financing, leasing, inventory insurance, commercial loans, and vehicle remarketing services. As of Dec. 31, 2012, it had $182.4 billion in assets.