| Financial Times | - |
General Electric has taken another step in shrinking its finance
arm with the sale of a set of businesses to Wells Fargo. Wells Fargo,
one of the largest lenders in the US, confirmed that is buying GE's
Commercial Distribution Finance business, its ...
October 13, 2015 2:41 pm
©Bloomberg
General Electric chief executive Jeff Immelt
General Electric has taken another step in shrinking its finance arm with the sale of a set of businesses to Wells Fargo.
Wells Fargo, one of the largest lenders in the US, confirmed
that is buying GE’s Commercial Distribution Finance business, its North
American Vendor Finance unit and its Corporate Finance business.
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The terms of the sale were not disclosed but the businesses collectively have about $32bn of assets, GE said.
GE’s longstanding chief executive Jeff Immelt is aiming to
generate about 75 per cent of the company’s profits from its industrial
divisions, which make everything from jet engines to hospital equipment.
The businesses offloaded to Wells Fargo include GE’s
loanbook to small- and medium-sized US companies as well as a financing
service used by manufacturers to pay for inventory.
General Electric to sell $30bn chunk of finance unit
Disposal to Wells Fargo would help remove heavy burden of ‘too big to fail’ status
The deal would take the Fairfield, Connecticut-based
conglomerate well past its stated goal of offloading about $100bn of
finance assets by the end of this year.
GE had earmarked about $200bn of assets for sale in April.
Keith Sherin, the chief executive of GE Capital, as the
company’s finance division is known, said that it will have completed
downsizing the finance division by the end of 2016.
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