GE to sell business lending, leasing units to Wells Fargo

NEW YORK (AP) - General Electric said Tuesday that it is selling three of its corporate lending and leasing units to Wells Fargo, the latest step in industrial conglomerate's campaign to shed its financial units so it can focus on its core businesses.

The companies did not disclose the purchase price, but said the three businesses being purchased have about $32 billion in loans and leases. The deal is expected to close in the first quarter of next year.

The three businesses are part of GE Capital, the financial unit that GE is selling in pieces to focus on its industrial roots. The businesses - commercial distribution finance, North American vendor finance and corporate finance - give loans to manufacturers, dealers or other companies. The three businesses have about 3,000 employees.

Wells Fargo said the acquisitions strengthen its presence in key commercial-lending markets. It's the second recent deal between the companies - last month, the banks' railcar finance, leasing and fleet management unit agreed to buy GE Railcar Services from GE Capital for undisclosed terms.

Industry analyst Nicholas Heymann of William Blair, who upgraded his rating on GE's stock to "Outperform," said few perceive how the conglomerate's shift has enhanced its growth prospects.

"We believe that GE is approaching the inflection point in its transformation ... into the premier base infrastructure company in the world," the analyst wrote in a note Monday before news of the latest deal.

Published: Thu, Oct 15, 2015