GM agrees to pay USD4b for Ally's Europe, Latin America ops 

(MENAFN) General Motors' financing arm GM Financial is set to buy Ally Financial's European and Latin American auto lending operations for about USD4 billion, Reuters reported.

GM Financial is seeking to boost sales in Europe and Latin America regions, reflecting its experience in North America after it returned to in-house financing with the creation of GM Financial in 2010.

The automaker has been gradually rebuilding its finance operations since selling a controlling stake in GMAC to private equity firm Cerberus Capital Management in 2006.

Ally, which is 74 percent owned by the US government, announced the plan to sell its international operations in May, in an effort to speed up the repayment of bailout funds. The company is focusing on its US business and has already sold operations in Canada and Mexico.

It is worth mentioning that Ally was the former financing arm of GM and was once known as GMAC.