Americredit
General Motors Co. is getting back into the credit business, a move that will give retailers more options to lease and finance car sales.
GM said Thursday it would buy AmeriCredit Corp. in a cash transaction valued at approximately $ 3.5 billion and approximately and 24.50 per share.
The acquisition gives GM what is known as a unit captive finance or lending division that allows greater flexibility to offer leasing and finance deals. You could fill the role once played by GMAC, the company sold almost a minority interest in that company in 2006.
“Adding to our team AmeriCredit improve our competitiveness in the auto financing deals, and I am very happy to have them on board,” said Ed Whitacre, CEO of GM.
GM is already working with AmeriCredit to provide auto loans to customers “no preference” or poor credit ratings. But this agreement will enable GM to do more with leases, that after almost dying during the recession are beginning to make a comeback in the automotive industry and may represent as much as a quarter of car sales this year.
“This is a really good movement, strong and strategic for the company. All the cars are not sold due to lack of funding is money left on the table and has a negative impact on the balance sheet,” said Rebecca Lindland, an*n*lyst at IHS Automotive.
The automaker said it will continue working with financial Ally, the former finance company GMAC, loans to customers with good credit and provide inventory financing for dealers.
It would be both politically and financially unsustainable to break the relationship with Ally to channel all funding activities AmeriCredit, said Kirk Ludtke, an*n*lyst at CRT Capital Group in Stamford, Connecticut
The federal government has approximately 57 billion of commitments – including 17.9 billion and direct investment and 32 billion of consumer deposits and secured federal and $ 7 million in unsecured debt securities – a Ally said.
“We continue to believe that the Obama administration is unlikely to allow either GM or ally to pursue a strategy that would undermine others,” said Ludtke.
In addition, Ally is a bank holding company, giving him an advantage over the financing of a finance unit of GM in captivity in the short term, he said.
However, Ludtke said AmeriCredit and the transaction appears to be affordable and manageable for GM. He said the choice of the house will give the automaker some influence when it comes to Ally and other funders.
AmeriCredit purchase plugs what GM executives saw as a void in the automotive operations as it prepares for an initial public offering later this year or next year.
GM emerged from bankruptcy reorganization a year ago, with lots of federal loans to restructure its business. The government now owns 61% of the cars and is looking to recover the money that poured into GM.
Lindland said he should try to offer the planned actions “that much more successful, which in turn receives more tax money back.”
AmeriCredit The transaction is expected to close later this year pending approval of the shareholders of AmeriCredit. AmeriCredit shares rose and 4.36, or 22%, and 24.06 in morning trading.
