Ally to sell Europe, Latin America operations to GM

Wed Nov 21, 2012 5:00pm EST

Nov 21 (Reuters) - Ally Financial said it will sell its Europe and Latin America operations to a unit of General Motors Co for about $4.2 billion.

Ally, which is 74 percent owned by the U.S. government, announced in May a plan to sell its international operations in a bid to speed up repayment of taxpayer money.

Ally agreed to sell its Canadian auto finance and deposit business to Royal Bank of Canada for $4.1 billion and its Mexican insurance unit to ACE Ltd for $865 million last month.

Reuters reported earlier this month that Ally was nearing a deal to sell its Europe and Latin America operations, with GM emerging as the leading bidder.