GM Makes A Bid For Ally Financial’s International Business
General Motors has bid on Ally Financial’s international operations. This is about two months after GM said that he wanted to buy Ally Financial’s business. GM made the bid through their subsidiary GM Financial. There are a “number of third parties” that are in the preliminary stages of the bid process. Ally’s assets could attract bids that are between $2 and $4 billion. Ally has operations in Canada, Mexico, Europe and Latin America.
“We’re the natural buyer,” stated Akerson. He added that GM is “not going to bleed to buy it.” GM believes that acquiring Ally could help boost their sales in those regions because it would improve their access to financing for customers.
Ally was previously known as GMAC Inc. and was once owned by GM. Ally wants to divest over $30 billion overseas auto finance and insurance assets as part of a plan to repay the U.S. government. Currently the Treasury Department owns about 74% of Ally Financial as part of the 2009 bailout.
[AutoNews]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry