Ally Financial Inc. (NYSE:ALLY) shares were trading higher Thursday after the company announced it has mutually agreed to terminate its $2.65-billion merger agreement with CardWorks, which was announced in February.
Neither company will have to pay a termination or break-up fee, according to a Wednesday press release from CardWorks.
The deal was called off due to "the fluctuating unprecedented economic and market conditions resulting from the COVID-19 global pandemic," the statement said.
"After careful consideration, Jeff Brown and I, along with our boards of directors, concluded that it would be in the best interest of our customers and our stakeholders, to terminate the agreement," Don Berman, the founder, chairman and CEO of CardWorks, said in a statement.
Ally Financial is a diversified financial services firm that services automotive dealers and their retail customers. The company operates as a financial holding company and a bank holding company.
Ally Financial's stock was trading up 8.52% at $19.87 at the time of publication premarket Thursday. The company has a 52-week high of $35.42 and a 52-week low of $10.22.
Benzinga file photo by Dustin Blitchok.