General Electric Co. has agreed to sell commercial lending and leasing businesses worth more than US$30 billion to Wells Fargo & Co.
It was a big step in the US conglomerate’s plan to unload most of its financing operations, Reuters reported.
GE has now signed US$126 billion in transactions — more than half its overall target — since announcing in April it would seek to reduce its GE Capital financing business to less than 10 percent of earnings as it focuses more on industrial manufacturing.
GE Capital accounted for 42 percent of the company’s profit in 2014.
Only one remaining significant GE Capital business in the United States remains: its franchise finance unit, which has about US$5.5 billion worth of assets.
The sale to Wells, the price of which was not disclosed, involves three lines of business: commercial distribution finance, vendor finance and corporate finance.
Commercial distribution finance offers lending to dealers and manufacturers of durable goods, such as boats, recreational vehicles and off-road vehicles. Vendor finance involves dealer networks for commercial equipment such as copiers, materials handling and construction machines.
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