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Ally Said Near Sale of Non-U.S. Assets to GM for $4 Billion
Ally Financial Inc. (ALLY), the lender majority-owned by the U.S., is in advanced talks to sell some international auto-finance businesses to General Motors Co. for $4 billion, two people with knowledge of the matter said.
GM (GM)’s bid includes Ally’s 40 percent stake in an auto- lending joint venture in China, as well as operations in Europe and Latin America, said one of the people, who asked not to be named because the discussions are private. The China business wasn’t part of the package of non-U.S. assets that Ally said in May it was seeking to shed.
While GM is the leading candidate to acquire the Ally operations, other potential buyers remain in talks, the people said. The parties may reach a deal as soon as next week, they said. Ally Chief Executive Officer Michael Carpenter said in a Nov. 2 conference call that the company expected to make an announcement on the asset sales this month.
“We continue to be focused on maximizing shareholder value and finding the best solutions for the remaining international operations,” Gina Proia, a spokeswoman for Detroit-based Ally, said in a phone interview.
Greg Martin, a spokesman for Detroit-based GM, declined to comment.
CEO Carpenter is selling assets as he seeks to repay taxpayers for a U.S. $17.2 billion rescue during the credit crisis. He is narrowing the focus of the firm, formerly known as GMAC Inc., to auto lending and U.S. banking.
Reuters previously reported the potential sale price and GM’s lead position in the talks.
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