RBC Will Pay Up To $4.1B For Ally's Canadian Auto Loan Biz

Law360, New York (October 23, 2012, 1:09 PM EDT) -- Royal Bank of Canada will scoop up Ally Financial Inc.’s Canadian auto loan unit in a deal worth as much as $4.1 billion, the lenders said, notching another move by Ally toward repaying a taxpayer-financed bailout made as the economy crumbled.

Ally said the sale price represented a $620 million premium to the business’ book value, though RBC pegged the total consideration at between $3.1 billion and $3.8 billion, below Ally’s figure. The pair did not spell out financing arrangements, but said they expected to button...
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