GM To Buy AmeriCredit Corporation For $3.5 Billion:The deal is seen as providing more car rental and financing options. The acquisition fills the role once played in the GMAC, in which the company refused as, faced with financial difficulties.General Motors Co. gets back into the credit business, a move that will give its dealers more opportunities leasing and finance for selling cars.
GM said Thursday that it would buy AmeriCredit Corporation in all cash transaction valued at approximately $ 3.5 billion, or about $ 24.50 per share.
The acquisition gives the GM, which is known as "captive finance unit, or lending division, which allows it to offer more flexible lease and financing transactions. It would fill the role once played in the GMAC, that the automaker refused to control, as she ran into financial trouble.
"The addition of AmeriCredit to our team will enhance our competitiveness in offering auto financing, and I am very glad to have them on board," said Ed Whitacre, chief executive GM.
GM is already working with AmeriCredit to provide car loans for customers with "non-prime or bad credit rating. But this deal will also allow GM to do more with the rent, after almost dying during an economic downturn are starting to make a return in the automotive industry and can be as much as quarter of car sales this year.
"It's really good, strong, strategic move for the company. Every car they do not sell because of lack of funding money on the table, and a negative impact on the balance sheet," said Rebecca Lindland, an analyst at IHS Automotive.
Car said it will continue to work with allies in the financial and former finance company GMAC, for loans to customers with good credit and to provide inventory financing for dealers.
It would be politically and financially bankrupt, to sever relations with an ally, to send all of its financing business AmeriCredit, said Kirk Ludtke, an analyst with CRT Capital Group in Stamford, Conn.
The Federal Government about $ 57 billion of obligations - including $ 17.9 billion in direct investments, $ 32 billion federal insured deposits of consumers, and $ 7 billion senior unsecured debt guarantee - for the allies, he said.
"We continue to believe that the US President Obama administration is unlikely to allow either GM or ally to pursue a strategy that would defeat the other," said Ludtke.
In addition, an ally of bank holding company, which would allow him an advantage over GM's captive finance unit of funding in the near future, "he said.
Nevertheless, said Ludtke AmeriCredit and the transaction seems to be reasonably priced and more manageable GM. He said that in-house version of the automaker will give some leverage when dealing with allies and other providers of finance.
Purchase of AmeriCredit forks that GM executives saw a gap in the operations of vehicles, as it prepares for initial public offering stocks at the end of this year or next year.
M. came out of bankruptcy reorganization a year ago, using massive federal loan to restructure its business. The government currently owns 61% of cars and hopes to recoup the money he poured on GM.
Lindland said acquisition is expected to make a stock offering, which is much more successful that, in turn, will get more tax money back.
AmeriCredit transaction should be completed by the end of this year, pending approval by shareholders of AmeriCredit. AmeriCredit shares rose $ 4.36, or 22%, to $ 24.06 in morning trading.
