BREAKING: GM to buy AmeriCredit Corp for $3.5B
Filed under: GM, Earnings/Financials
General Motors has just announced its intent to acquire AmeriCredit Corp. According to the automaker, the move should give dealers an added finance option when it comes to putting car shoppers into a new vehicle. Since GM and GMAC parted ways back in 2006, buyers looking to purchase a car or truck from The General have faced tougher financing terms than in the past. Supposedly, the new deal with AmeriCredit will provide new opportunities for sub-prime borrowers. The total cost of the deal? A cool $3.5 billion in straight cash.
GM says that putting AmeriCredit under its wing is the next logical step in moving toward an IPO, and most analysts seem to agree. The carmaker had been criticized for not having an in-house financing arm in the past, but the new move should afford the company and its dealership network an added level of financing flexibility. It should also allow GM to return to leasing in a big way. The two companies have been working together extensively in recent months, and GM says that over 4,000 of its dealerships already have relationships with the lender.
The purchase has already been approved by the boards of both GM and AmeriCredit, and pending approval from the lender’s stockholders, The General will purchase the finance company for $24.50 per share. As of writing, the company’s stock is currently trading at $24.07 – up $4.36 on news of the purchase. Hit the jump for the GM press release. Thanks for the tips, Jeff and Sea Urchin!
[Sources: General Motors, TickerSpy]
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BREAKING: GM to buy AmeriCredit Corp for $3.5B originally appeared on Autoblog on Thu, 22 Jul 2010 10:56:00 EST. Please see our terms for use of feeds.
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