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General Electric completes sale of fleet services in $5 billion transaction

Staff writer ▼ | September 2, 2015
General Electric has completed the sale of its U.S. fleet services business, representing aggregate ending net investment (ENI) of approximately $4.4 billion, to Element Financial Corporation in a transaction valued at approximately $5 billion.
General Electric
Selling   GE is embarking on a new strategy
Separately, the previously announced sale of GE’s Mexican, Australian and New Zealand fleet businesses to Element is expected to close at the end of the third quarter, and the sale of GE’s European fleet businesses to Arval, a fully-owned subsidiary of BNP Paribas, is expected to close in the fourth quarter.

As previously announced, GE is embarking on a strategy to focus on its high-value industrial businesses and is selling most GE Capital assets. GE and its Board of Directors have determined that current market conditions are favorable to pursue disposition of these assets. GE will retain the financing “verticals” that relate to GE’s industrial businesses.

The U.S. fleet services transaction releases approximately $0.6 billion of capital. GE Capital believes it is on track to deliver about $35 billion of dividends to GE under this plan, as previously announced subject to regulatory approval.