Chevrolet cars are seen at a GM dealership in Miami.CARLOS BARRIA/Reuters
General Motors Co. says it has completed the planned $3.9-billion (U.S.) purchase of 156.1 million shares of preferred stock.
The Detroit-based auto maker sold cheaper debt to pay for the purchase. GM spokesman Tom Henderson said Wednesday that the deal improves the company's cost structure.
GM has now redeemed all series A preferred stock from the UAW Retiree Medical Benefits Trust and Canada Gen Investment Corp. The trust provides health benefits to retired auto workers and the investment corporation manages the Canadian government's investment in GM.
The trust got the shares after GM emerged from bankruptcy to help pay the company's retiree health care costs. GM bought back some preferred stock last year.
GM will take an $800-million charge in the fourth quarter for buying back the preferred stock.