RBC completes acquisition of Ally's Canadian automotive finance business

 RBC completes acquisition of Ally's Canadian automotive finance business  TORONTO, Feb. 1, 2013 /CNW/ - Royal Bank of Canada (TSX:RY) (NYSE:RY) today  announced it has completed the acquisition of the Canadian automotive finance  and deposit business of Ally Financial Inc. ("Ally Canada") for a $1.4 billion  investment net of excess capital. Including the excess capital and after  certain closing adjustments, the total consideration paid was $3.7 billion.  The acquisition positions RBC as a leader in the Canadian automotive financing  business.  "Ally Canada significantly expands the scope and capability of our existing  consumer and commercial auto financing business and we're encouraged by the  positive response from dealers who want to continue building their business  with RBC," said Dave McKay, Group Head, Personal & Commercial Banking, RBC.  "We've gained a quality and stable business with strong industry relationships  that creates a leading auto financing business in Canada."  The Ally Canada team joins the existing RBC team to form RBC Automotive  Finance, a part of the Personal and Commercial Banking segment of RBC. It  provides financial services, including floor plan financing, directly to auto  dealers and also offers financing for consumers through dealerships.  Building on its commitment to the automotive business, RBC is now a partner  with General Motors of Canada to provide subvented loans to its customers,  adding to the bank's existing agreements with other leading auto  manufacturers. Subvented loans are low rate consumer auto loans subsidized by  the manufacturer.  About RBC  Royal Bank of Canada (RY on TSX and NYSE) and its subsidiaries operate under  the master brand name RBC. We are Canada's largest bank as measured by assets  and market capitalization, and among the largest banks in the world, based on  market capitalization. We are one of North America's leading diversified  financial services companies, and provide personal and commercial banking,  wealth management services, insurance, investor services and wholesale banking  on a global basis. We employ approximately 80,000 full- and part-time  employees who serve more than 15 million personal, business, public sector and  institutional clients through offices in Canada, the U.S. and 49 other  countries. For more information, please visit rbc.com.  CAUTION REGARDING FORWARD-LOOKING STATEMENTS  Certain statements contained in this press release may be deemed to be  forward-looking statements under certain securities laws, including the "safe  harbor" provisions of the United States Private Securities Litigation Reform  Act of 1995 and any applicable Canadian securities legislation. These  forward-looking statements include, but are not limited to, statements about  the expected impact of the acquisition of the Canadian automotive finance and  deposit business of Ally Financial Inc. by Royal Bank of Canada and other  statements other than in relation to historical facts. Forward-looking  statements are typically identified by words such as "believe", "expect",  "foresee", "forecast", "anticipate", "intend", "estimate", "goal", "plan" and  "project" and similar expressions of future or conditional verbs such as  "will", "may", "should", "could", or "would".  By their very nature, forward-looking statements require us to make  assumptions and are subject to inherent risks and uncertainties, which give  rise to the possibility that our predictions, forecasts, projections,  expectations or conclusions and other forward-looking information, including  statements about the acquisition of the Canadian automotive finance and  deposit business of Ally Financial Inc. by Royal Bank of Canada will not be  achieved. We caution readers not to place undue reliance on these statements  as a number of risk factors could cause our actual results to differ  materially from the expectations expressed in such forward-looking statements.  These factors include, but are not limited to the impact of changes in the  laws and regulations regulating financial services and enforcement thereof;  general business, economic and market conditions in Canada, the United States  and certain other countries in which Canada and Ally Financial Inc. operate;  the effects of competition in the markets in which Royal Bank of Canada and  Ally Financial Inc. operate; judicial or regulatory judgments and legal  proceedings; Royal Bank of Canada's ability to complete the integration of the  Canadian automotive finance and deposit business of Ally Financial Inc.  successfully; and other factors that may affect future results of Royal Bank  of Canada and the Canadian automotive finance and deposit business of Ally  Financial Inc. including timely development and introduction of new products  and services, Royal Bank of Canada's ability to cross-sell more products to  customers and technological changes.  We caution that the foregoing list of important factors is not exhaustive.  Additional information about these and other factors can be found in our 2012  Annual Report to Shareholders. Our material general economic assumptions  underlying the forward-looking statements in this press release are set out in  our 2012 Annual Report under the heading "Overview and Outlook" and for each  business segment under the heading "Outlook and priorities". Except as  required by law, Royal Bank of Canada assumes no obligation to update the  forward-looking statements contained in this press release.  Media Contacts: Kerry Gaetano, Head, Corporate Communications, Personal &  Commercial Banking and  Insurance, 905 816-5583 or 647 281-2931 Matt  Gierasimczuk, Senior Communications Manager, Corporate Communications, 416  974-2124  Analyst Contacts: Robert Colangelo, Associate Director, Investor Relations,  416 955-2049  SOURCE: RBC  To view this news release in HTML formatting, please use the following URL:  http://www.newswire.ca/en/releases/archive/February2013/01/c2320.html  CO: RBC Royal Bank ST: Ontario NI: FIN MNA  
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