RBC buys Ally unit

Royal Bank of Canada (RBC) of Toronto has reached an agreement to purchase the automobile financing and deposit business of Ally Financial Inc.’s Canadian unit. The entities being bought as part of the deal include Ally Credit Canada Ltd. and ResMor Trust Co. RBC is making the acquisition for $1.4 billion, net of excess capital. Ally Canada offers financing to more than 580 auto dealerships and consumer retail financing through about 1,600 dealerships, and has roughly 450,000 consumer loans outstanding.

(fcollie@investmentexecutive.com)