Element, PHH boards approve deal for auto leasing unit -sources

NEW YORK, June 2 Mon Jun 2, 2014 10:35am EDT

NEW YORK, June 2 (Reuters) - Element Financial Corp is finalizing a deal to buy PHH Corp's auto fleet leasing business for about $1.4 billion, two sources familiar with the matter said on Monday.

The transaction would give Element, a Canadian equipment finance company, a platform for expansion in the United States.

The boards of both companies approved the transaction involving the unit, PHH Arval, this weekend, and the contract was being finalized, the sources said. A deal could be announced as soon as after the market close on Monday, the sources said.

PHH's net proceeds from the deal, after taxes and expenses, were expected to be between $750 million and $800 million, one source said.

Officials from PHH, which also has a mortgage business, and Element could not be reached immediately for comment. (Reporting by Paritosh Bansal; Editing by Jeffrey Benkoe)