UPDATE 3-GM to buy Ally's Europe, Latin America operations
* Ally finalizes sale to raise funds for bailout repayments
* GM CFO Ammann says no need for more acquisitions for auto finance
* Ammann says captive finance arm boosted N. America sales
* GM Financial will expand to Russia, Australia, Argentina
* Sees no need to expand N. American auto finance
Nov 21 (Reuters) - General Motors' financing arm GM Financial has agreed to pay about $4.2 billion for the European and Latin American auto lending operations of Ally Financial, as it looks to extend its in-house financing to boost sales.
Ally, which is 74 percent owned by the U.S. government, announced the plan to sell its international operations in May, in an effort to speed up the repayment of bailout funds. The company is focusing on its U.S. business and has already sold operations in Canada and Mexico.
GM said the purchase should increase its sales in Europe and Latin America, reflecting its experience in North America after it returned to in-house financing with the creation of GM Financial in 2010.
GM is also still partially owned by the U.S. government after a series of bailouts during the financial crisis and the companies also have an intertwined history: Ally is the former financing arm of GM and was once known as GMAC. Continued...