Financial players across the globe are in the running to snatch up billions of dollars worth of assets from GE Capital, the financial services and corporate lending unit of General Electric.
So far, Wells Fargo is said to be interested in acquiring $74 billion worth of middle-market loans, while Capital One announced last month it would be buying GE Capital’s health care finance unit for $8.5 billion.
Reports in The Wall Street Journal published Friday (Sept. 4) said new bidders are in the race for more of GE Capital’s assets. According to reports, several Japanese banks are looking to acquire GE’s commercial lending and leasing unit, unnamed sources told the publication.
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The interested buyers include Orix Corp, Sumitomo Mitsui Financial Group, Mitsubishi UFJ Financial Group and Sumotomo Mitsui Trust Holdings.
Reports added that the assets are estimated to be worth $5 billion. The same unnamed sources said Morgan Stanley will be handling the sale.
GE Capital already struck a sale to a Japanese company, reports said, when Sumitomo Mitsui Banking Corp. agreed to acquire GE Capital’s private equity financing operations in Europe for $2.2 billion.
General Electric first revealed in April that it plans to divest $275 billion worth of assets from its finance unit in an effort to refocus operations on its industrial business, which the company said will likely lead to about 90 percent of the company’s overall earnings by 2018. In comparison, its industrial businesses made up 58 percent of its earnings in 2014, reports said.
The company also said that it is looking for the Financial Stability Oversight Council to remove it as a designated SIFI. “We have a constructive relationship with our regulators and will continue to work with them as we go through this process,” GE CEO Jeff Immelt said in a statement at the time.