DETROIT (AP) — Ally Financial said Tuesday that it will sell its Canadian auto finance operation to Royal Bank of Canada for $4.1 billion.
It is part of Detroit-based Ally's plan to sell international assets to repay Washington for a $17.2 billion bailout. Ally is 74 percent owned by the government. It has repaid $5.5 billion so far.
The deal with RBC is expected to close early next year. Ally said in a statement that RBC will pay a $620 million premium over book value to buy Ally Credit Canada Limited and ResMor Trust. Book value for the third quarter was about $3.5 billion.
Ally is still evaluating the sale of operations in Europe and Latin America.
Ally said its Canadian auto operation is among the country's largest, with about $9.4 billion in assets.
