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RBC near deal to buy U.S. auto lender Ally Financial’s Canadian unit: report

A Toronto branch of Royal Bank of Canada

MARK BLINCH/REUTERS

Ally Financial Inc., the U.S. auto lender 74 per cent 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 (U.S.), CNBC reported on Monday.

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. Ally is trying to turn around the company by focusing on U.S. auto lending and its Internet bank.

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Neither Ally nor RBC was immediately available for comment.

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