Toronto-Dominion Bank (TD) said Tuesday it will buy Chrysler Financial Corp for 6.3 billion dollars in cash, part of a major expansion of Canadian banking behemoths into the United States. The deal comes just days after the Bank of Montreal (BMO) doubled its stake in the US banking market with the purchase of Marshall & Ilsley for 4.1 billion in stock.
TD Bank is already one of the 10 largest banks operating in the United States, with some 6.5 million customers and 1,250 branches in 15 states and the District of Columbia. The Chrysler Financial deal - combined with TD's current platforms in Canada and the United States - positions the company among the top five bank-owned auto lenders in North America. "This transaction represents a unique opportunity to purchase a great organic growth platform at an attractive price," said Ed Clark, group president and chief executive officer of TD.
"Chrysler Financial is a well-run business with the capacity for significantly higher returns over the next several years. Chrysler Financial's dealer clients serve approximately one million customers in the United States and Canada and TD said the deal will give it access to "a North American platform, top talent and systems, and technology capable of processing over two million credit applications per year."