GM in Talks to Buy Ally’s Overseas Units

General Motors Co. is in advanced negotiations to acquire Ally Financial Inc.'s auto-lending operations in Europe and Latin America for $4 billion, according to news reports that cite anonymous sources.

Reuters, which first reported the talks, says Ally (formerly GMAC Inc.) might still decide to sell the two regional units to different buyers.

GM also seeks to buy Ally's business in China, according to Bloomberg News. The Chinese unit was not among the assets Ally put up for sale in May. The finance company is divesting its international operations to raise cash to help repay its bailout loan from the U.S. government.

Last month Ally agreed to sell its Canadian auto lending business to Royal Bank of Canada for $4.1 billion and its Mexican insurance unit to insurer ACE Group for $865 million. Ally has said it expects to finalize its other asset sales this month.

GM said in August it was among the bidders for Ally's international units. The carmaker would like to buy back its former lending operations abroad to help it reconstitute a full-fledged finance arm.