RBC completes Ally Financial purchase

Royal Bank of Canada has completed its acquisition of the Canadian automotive finance and deposit business of Ally Financial.

The deal closed at $1.4 billion, which was the investment net of excess capital. Including the excess capital and after certain closing adjustments, the total consideration paid was $3.7 billion.

“Ally Canada significantly expands the scope and capability of our existing consumer and commercial auto financing business,” says Dave McKay, group head of personal & commercial banking at RBC.

Ally will join the existing RBC team to form RBC Automotive Finance. It will provide financial services directly to auto dealers and also offer financing for consumers through dealerships.

The bank has also partnered with General Motors of Canada to provide subvented loans to its customers.

Read:

RBC scoops up Ally Financial for $1.4 billion

Canadian banks on acquisition spree

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.