Automotorpad.com | Gallery | Photo | News | Bmw | Ford | Nissan | Honda |

Buy RBC Canadian car financing activities Ally

Royal Bank (TSX: RY) announced Tuesday that it would pay a net price of approximately $ 1.4 billion to acquire Canadian auto finance activities and filing of Ally Financial, which disposes of assets International to repay financial assistance granted by the U.S. government.

This transaction occurs after a war which would include submissions has participated TD Bank (TSX: TD), according to reports.

Royal has indicated that the cost of acquisition would be approximately $ 1.4 billion, net of excess capital to be acquired under the agreement. Taking into account the capital, the operation will result in a total amount of between 3.1 and $ 3.8 billion.

"Given the quality of the activities of Ally and the attractiveness of the industry _ I think Ally has said there were up to 15 bidders at the beginning of the process _ I would say that arouses interest by the activities of Ally was as high as the competition was strong, "he says head of group services to individuals and businesses of Royal, Dave McKay, during a telephone conversation.

Canadian services Ally offer financing on stocks more than 580 auto dealers nationwide. The consumer sector the company has made some 450,000 consumer credit loans.

The assets are part of those of the former financing arm of General Motors.

RBC says that once the transaction is completed, it would become a provider of loans subsidized by General Motors of Canada. A subsidized loan is a car loan with low interest rates subsidized by the manufacturer.

General Motors is part of a group of some 30 bidders interested in international activities of Ally. The manufacturer has not been successful in Canada and Mexico.

Acquired legal entities are Ally Credit Canada and ResMor Trust Company. The carrying value of assets acquired on September 30 was $ 3.4 billion, an amount that does not include the dividend levied before the conclusion of the operation. The net investment of $ 1.4 billion included a premium of $ 600 million compared to the carrying value.

RBC said he expected that the activities of Ally Canada has let alone a net profit of approximately $ 120 million during the 12 months following the conclusion of the operation.

The transaction will be subject to customary closing conditions, including receipt of regulatory and other approvals, and is expected to close during the first quarter of 2013.

The action of the Royal Bank cede $ 1.66 Tuesday at the Toronto Stock Exchange, to close at $ 56.94.

By David Friend

Buy RBC Canadian car financing activities Ally picture #1

Read also: recent reviews, test drives, automotive trends and the latest news from the world of cars.

Video

Read more about:

Popular News

View more:

More Popular Images

Automotorpad.com
© 2014: All rights protected.
Contacts Google Sitemap