NEW YORK, June 2 (Reuters) - Element Financial Corp EFN.TO is finalizing a deal to buy PHH Corp's PHH.N 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)

((paritosh.bansal@thomsonreuters.com)(+1 646 223 6113)(Reuters Messaging: paritosh.bansal.thomsonreuters.com@reuters.net))

Keywords: PHH ELEMENT/