Macquarie To Purchase US$1 Billion Car Loan Portfolio From Ford Motor Co

Post by Sharat on October 5, 2009 · Under Australian Economy, Business News, Company News, Mergers & Acquistions, banking · Comment

Australian investment banking major Macquarie Group has purchased $1 billion worth of car loans from beleaguered US auto giant Ford Motor, according to statements issued by both companies last week.

In January Ford Credit Australia said that it would no longer offer any new car finance, preferring instead to tend to its existing portfolio. On Friday however the company confirmed that it had sold its entire portfolio to Macquarie Group.

Last Thursday Macquarie said it had acquired the loans and leases of approximately 60,000 vehicles worth about $1 billion from an unnamed car finance company.

The portfolio will be transferred on a gradual basis from Ford to Macquarie until January, at which point Macquarie will have sole responsibility for overseeing the portfolio.

Earlier in the year, as part of its effort to return to profitability, reduce its debt level and interest payment obligations, Ford Motor Co undertook a debt for equity swap. The US auto industry faces unprecedented challenges that threaten the entire industry.

Macquarie has used a substantial war chest that it has built, to fund predatory acquisitions. The acquisition of Ford’s auto loans is just one of a series of deals the company has done of late.

Last month the firm acquired US asset manager Delaware Investment, and boutique investment bank Fox, Pitt & Kelton.

In Australia Macquarie is expanding its car credit operations after other international conglomerates pulled out of the market.

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