UPDATE 4-Ally near deal to sell Canadian business to RBC-source

Mon Oct 22, 2012 4:36pm EDT
 
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* Deal could bring in at least $4 billion for Ally - source

* U.S. auto lender announced in May plans to sell international units

* Ally received $17 billion in financial crisis bailouts

By Jessica Toonkel and Rick Rothacker

Oct 22 (Reuters) - Ally Financial Inc, the U.S. auto lender 74 percent owned by the U.S. Treasury, is near a deal to sell its Canadian operations to Royal Bank of Canada for more than $4 billion, according to a source familiar with the deal.

A deal could be announced as early as Monday, but talks are fluid, the source said. RBC has been competing with another Canadian bank, Toronto Dominion Bank, in the auction, the source said.

CNBC first reported the deal talks on Monday morning.

Ally, the former auto lending arm of General Motors Co , announced plans in May to sell its international operations in an effort to speed up repayment of government bailouts it received during the financial crisis.

The lender last week agreed to sell its Mexican insurance business to insurance and reinsurance company ACE Ltd for $865 million in cash.   Continued...