GM arm completes purchase of some Ally assets
GM Financial completes purchase of most Ally Financial operations in Europe, Latin America
NEW YORK (AP) -- General Motors Co. said Tuesday that its financial arm completed the purchase of most of Ally Financial's operations in Europe and Latin America.
In November GM announced that its U.S. loan business, General Motors Financial Co. Inc., would pay $4.25 billion for Ally's operations in Europe, Latin America and China, which would help GM to better compete in markets where other automakers already have their own loan operations. Automakers with their own finance arms often subsidize loans and leases to boost sales.
When the deal was announced it was expected to close in stages during 2013.
GM said it bought Ally's operations in Germany, the U.K., Italy, Sweden, Switzerland, Austria, Belgium, the Netherlands, Chile, Colombia and Mexico.
The purchase agreement with Ally also includes operations in France, Brazil and China, which are pending regulatory approvals and are expected to close later this year.
Ally Financial Inc. said Tuesday that it received proceeds of about $2.6 billion, which included a payment of about $2.4 billion at closing and $190 million in dividends paid before the closing.
General Motors Financial Co. is based in Fort Worth, Texas.
GM shares rose 12 cents to $27.92 in midday trading.
