TD finalizes deal for Chrysler Financial

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Toronto-Dominion Bank has sealed a $6.3-billion deal to purchase Chrysler Financial, published reports say.

The lending division was put on the market by Cerberus Capital Management LP, which acquired the lending arm in 2007. Today’s deal reportedly involves $5.9-billion of net assets and $400-million in goodwill.

“This transaction represents a unique opportunity to purchase a great organic growth platform at an attractive price,” TD chief executive officer Ed Clark said in a statement.

“Chrysler Financial is a well-run business with the capacity for significantly higher returns over the next several years. This acquisition will allow us to leverage our lending expertise and financial strength to expand our presence in a large North American market with tremendous potential upside.”

Check back with Canadian AutoWorld as more on this story develops.