Ally Financial announced it has almost completed the sales of its assets in Latin America and Europe to GM Financial for $2.6 billion.
“Completion of this transaction marks another step in Ally’s plans to further strengthen its financial profile going forward and to focus on its core leading U.S.-based franchises,” Ally CEO Michael Carpenter said in a news release.
Ally announced today, April 2nd, that GM Financial will offer almost $2.4 billion at closing and around $190 million in dividends before the closing. Ally Financial sold its operations in Columbia, Chile, Mexico, the Netherlands, Belgium, Austria, Switzerland, Sweden, Italy, the UK and Germany. The operations sales in Brazil, France and a JV in China are still under negotiations and are expected to reach closing later this year.
“We remain committed to further advancing our strategic plans and best positioning Ally to repay the U.S. taxpayer’s investment,” Carpenter said.
Last month, the US Federal Reserve said that Ally Financial will not be able to survive a severe recession in the States. Ally Financial, which is still majority-owned by the government after the 2009 bailout, would be the only one among the nation’s 18 largest banks that would not survive the Federal Reserve’s scenario.