Ally LatAm Assets Go Back to GM

Ally Financial has agreed to sell its operations in Brazil, Mexico, Colombia and Chile to General Motors, it says, as part of a larger $4.2bn sale of all Ally’s international assets. The total buy, including European and LatAm operations and 40% of a Chinese joint venture, comes at a $550m premium to book value, GM says. The auto lender formerly known as GMAC has been looking to shed the international operations since May. GM owned GMAC until 2006. Sullivan and Cromwell advised Ally on the deal, expected to close in mid-2013, subject to approvals. It follows the $865m sale of Ally’s ABA Seguros Mexico insurance business to Switzerland’s ACE agreed last month.