GE Completes Sale of Equipment Finance and Receivable Finance Businesses in Germany and France to BFCM (Credit Mutuel Group)
July 20 2016 - 12:00PM
Business Wire
- Transaction Aligns with GE’s Strategy
to Create Simpler, More Valuable Industrial Company
- GE Capital’s Completed Deals to Date
Total Approximately US$168 Billion (ENI)
GE (NYSE:GE) announced today that it has completed the sale of
its Equipment Finance and Receivable Finance businesses in France
and Germany to Banque Fédérative du Crédit Mutuel (BFCM),
representing ending net investment (ENI) of approximately $6.8
billion / €6.1 billion as of first quarter 2016.
“We’re pleased to complete this transaction with BFCM for a
significant piece of our European business,” said Keith Sherin, GE
Capital chairman and CEO. “As we continue to execute on our
strategy to significantly reduce the size of GE Capital, we wish
our commercial finance employees in France and Germany the very
best as they join BFCM,” he added.
BFCM is part of CM11 which belongs to Crédit Mutuel group, the
second largest retail bank in France with a strong competitive
positioning in home loans, SME and non-life insurance.
As previously announced, GE is focusing on its high-value
industrial businesses and is selling most of GE Capital’s assets.
GE will retain the financing “verticals” that relate to GE’s
industrial businesses. Since the announcement, GE Capital has
signed agreements for the sale of approximately US$183 billion of
businesses and has closed approximately US$168 billion of those
transactions. GE Capital plans to have largely completed the
process of selling approximately $200 billion of GE Capital
businesses not linked to GE by the end of 2016.
The transaction contributed approximately US$1.3 billion of
capital to the overall target of approximately US$35 billion of
dividends expected to be paid to GE under this plan.
About BFCM & CM11 Group
With more than 4,063 branches CM11 Group is one of the leading
French retail banks. BFCM, the group’s holding company, owns and
controls the French and foreign operational subsidiaries
(insurance, banking, IT, etc.) including CIC, Targobank (in Germany
and Spain), CIC Iberbanco (in France) and Cofidis (in France,
Belgium, Spain and Portugal). It also manages the funding and
liquidity of the group and serves as a vehicle for external growth
transactions.
As at 31 December 2015 CM11 Group had €38.7 billion of
shareholders’ equity, a common equity tier 1 ratio (as required
under CRR/CRD4 without transitional Provisions) of 15.1%, managed
€583 billion of deposits and savings and €304 billion of
outstanding loans, with net income of €2.5 billion. BCFM’s credit
ratings are among the highest levels assigned to French banks.
About GE
GE (NYSE:GE) is the world’s Digital Industrial Company,
transforming industry with software-defined machines and solutions
that are connected, responsive and predictive. GE is organized
around a global exchange of knowledge, the "GE Store," through
which each business shares and accesses the same technology,
markets, structure and intellect. Each invention further fuels
innovation and application across our industrial sectors. With
people, services, technology and scale, GE delivers better outcomes
for customers by speaking the language of industry. www.ge.com
GE’s Investor Relations website at www.ge.com/investor and our
corporate blog at www.gereports.com, as well as GE’s Facebook page
and Twitter accounts, including @GE_Reports, contain a significant
amount of information about GE, including financial and other
information for investors. GE encourages investors to visit these
websites from time to time, as information is updated and new
information is posted.
Caution Concerning Forward-Looking Statements:
This document contains "forward-looking statements" – that is,
statements related to future events that by their nature address
matters that are, to different degrees, uncertain. For details on
the uncertainties that may cause our actual future results to be
materially different than those expressed in our forward-looking
statements,
see http://www.ge.com/investor-relations/disclaimer-caution-concerning-forward-looking-statements as
well as our annual reports on Form 10-K and quarterly reports on
Form 10-Q. We do not undertake to update our forward-looking
statements. This document also includes certain forward-looking
projected financial information that is based on current estimates
and forecasts. Actual results could differ materially.
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Investors:Matt Cribbins, +1
203-373-2424matthewg.cribbins@ge.comorMedia:GE
Capital:Ned Reynolds, +1 203-840-5075ned.reynolds@ge.com
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