Element Financial Corp. is expected to finalize the purchase of PHH Corp.'s fleet leasing unit for about $1.35 billion in about two weeks, according to a Reuters report quoting a source familiar with the matter.

PHH and Element, a Canadian equipment finance company that also manages fleet vehicles, must still work out details including customer issues, Reuters reported.

The price tag for PHH Arval reported by Reuters would be significantly higher than expected. Paul Miller, an analyst with FBR Capital Markets, had pegged PHH Arval's value at $650 million at 1.5 times book value.

Element reportedly entered talks with PHH in February, after PHH announced it had hired J.P. Morgan Securities and others to explore a spinoff. The companies have declined to comment publicly on their discussions.