GE Sells French Consumer-Credit Unit
June 23 2016 - 5:00AM
Dow Jones News
PARIS—General Electric Co. received a binding offer from
private-equity firm Cerberus Capital Management L.P. for its French
consumer-credit unit, GE Money Bank, the latest step in the
industrial group's exit from the finance sector.
The sale would represent ending net investment equivalent to
around $4.6 billion at March 31, GE said. The operation will
exclude the unit's $2 billion mortgage-loan portfolio, which will
be sold separately, the company said.
Provided it is approved by regulators, the transaction would be
completed during the fourth quarter, GE said.
The sale is part of the company's broader strategy to
drastically reduce its financial services activities to focus on
its industrial businesses which it considers can bring more value.
GE announced in April last year that it would sell off most of GE
Capital, what was then its $500 billion lending business.
Including this transaction, GE Capital has closed deals worth
about $156 billion since last April, GE said.
Private-equity firms such as Cerberus have been significant
investors in Europe's banking sector in recent years, often picking
up portfolios of bad loans from European banks eager to shore up
their balance sheets.
Write to Inti Landauro at inti.landauro@wsj.com
(END) Dow Jones Newswires
June 23, 2016 04:45 ET (08:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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