GM may acquire Ally's Europe, Latin America auto finance arms, report says
November 9, 2012
by Jessica Toonkel and Rick Rothacker
Ally Financial Inc. is nearing a deal to sell its auto financing operations in Europe and Latin America for around $4 billion, with General Motors emerging as the lead bidder if the company decides to sell those operations as a whole, two sources familiar with the situation said.
Ally is still considering whether to split the business geographically - Europe and Latin America - and sell it to two different parties, the sources said on Friday. A deal could come as soon as next week, they said.
Details of an agreement have not been finalized, and the outcome could change, the sources said. Ally is still talking to a handful of financial institutions that have made separate bids for its European and Latin American assets, they said.
Ally, which is 74-percent owned by the U.S. government after a series of bailouts during the financial crisis, announced in May a plan to sell its international operations in a bid to speed up repayment to taxpayers.
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