GM plans to bid for Ally Financial, which is Europe’s and Latin America’s auto-lending arms.
The largest U.S. automaker will bid this week for the Detroit-based Ally, which in May put its non-U.S. operations up for sale to help repay a bailout of the US government. Companies are required to submit bids until September 21st, after 30 bidders expressed their interest in July.
“We are encouraged by the breadth and depth of interest in the international businesses,” said Gina Proia, an Ally spokeswoman.
GM Financial was created in 2010 by with the acquisition of AmeriCredit Corp, and buying these units would more than double the assets of the company. GM owned GMAC, Ally’s predecessor, until 2006, when the company had to sell 51% of it to Cerberus Capital Management LP.
Besides GM Financial, the other companies expressing interest in Ally’s Canadian operations are Royal Bank of Canada and Toronto-Dominion Bank, the last one previously buying the former lending arm of Chrysler for $6.3 billion in 2011.
“We have disclosed our interest in acquiring some parts of Ally’s international operations but we’re not prepared to discuss the topic in any detail in the middle of the process,” GM said in an e-mailed statement.