Royal Bank of Canada, the nation's largest lender, agreed to buy Ally Financial's Canadian auto-finance and deposit business in a cash deal providing $4.1 billion in proceeds to Ally.

Royal Bank will buy the Ally business for a C$1.4 billion ($1.4 billion) investment net of excess capital, the Toronto- based lender said today in a statement. RBC said the total price will be C$3.1 billion to C$3.8 billion, depending on the size of a dividend taken out by Ally prior to closing. The deal is the largest takeover ever for Royal Bank, eclipsing a $2.16 billion purchase of Centura Banks in 2001.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.