There was the announcement today of the second Canadian bank making a big acquisition in as many weeks. TD Bank Group (NYSE:TD) said today it has agreed to buy Chrysler Financial for $6.3 billion in cash consideration from private equity firm Cerberus Capital Management. The purchase price is comprised of net assets of $5.9 billion and $400 million in goodwill.
TD is acquiring all of Chrysler Financialís processes and technology as well as its portfolio of retail assets in the U.S. and Canada. TD noted that following the transaction, it will be positioned as a top five bank-owned auto lender in North America.
TD said the deal will give it a platform for asset generation in the North American auto lending market, so it can significantly grow its consumer loan portfolio. Chrysler Financialís dealer clients serve about 1 million customers, and the firm has $650-$700 million in outstanding receivables.
The acquisition is expected to close in TDís second fiscal quarter of 2011, and it expects to re-brand Chrysler Financial by spring 2011.
Last week, BMO Financial Group (NYSE:BMO) said it would acquire Marshal & Ilsley (MI) in an all-stock transaction worth $4.1 billion.
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