You can now read 5 articles in a month for free on Read as much as you want anywhere and anytime for just 99¢.

GM submits bid for Ally Financial’s international operations

SOUTHFIELD, Mich. — General Motors Co., the largest US automaker, said its lending arm made a bid in July for Ally Financial Inc.’s international operations, which, if successful, could more than double GM Financial Co.’s consolidated assets.

Ally, which in May said it was putting its ResCap mortgage subsidiaries in Chapter 11 bankruptcy, is also seeking to divest more than $30 billion of assets in Canada, Mexico, Europe, and Latin America.

Continue reading below

“GM Financial and a number of other third parties submitted indicative bids in July and are at the preliminary stages of the bid process investigation,” Detroit-based GM said Monday in a regulatory filing.

Dan Akerson, GM’s chief executive, said in May that he was interested in acquiring Ally’s international operations.

“We’re interested in it, but we’re not going to bleed to buy it,” Akerson said at Bloomberg’s New York headquarters. “We’re the natural buyer.”

The asset sales may allow Ally to repay two-thirds of the government rescue that left the Treasury Department with a 74 percent stake, Ally’s chief executive, Michael Carpenter, said in May.

Ally has received “a very strong level of interest with nearly 30 different bidders,” Carpenter said during a conference call Aug. 1.

“We are encouraged by the initial progress,” Gina Proia, an Ally spokeswoman, said Monday.

GM had owned Ally’s predecessor, GMAC, until 2006, when the automaker sold 51 percent of it to Cerberus Capital Management LP.

GM Financial, the automaker’s lending arm, was created by GM after acquiring Fort Worth-based AmeriCredit Corp. in 2010.

“If GM Financial is the successful bidder, its consolidated assets could potentially more than double, and it could incur substantial amounts of indebtedness, including secured debt,” GM’s filing said.

General Motors’ stock declined 0.3 percent to $20.47 at the close in New York.

Loading comments...
Want each day's news headlines delivered fresh to your
inbox every morning? Just connect with us
in one of the following ways:
Please enter a valid email will never post anything without asking.
Privacy Policy
Subscriber Log In

You have reached the limit of 5 free articles in a month

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week
Marketing image of
Marketing image of