Two Companies Are Bidding On GE’s Japanese Commercial Lending Business

GE selling financial unit in Japan

General Electric’s Japanese commercial lending business is still up for sale and there are two serious bidders left in the process.

A report from The Wall Street Journal reports that several people close to the situation believe the deal will be closed between one of two companies.

The leasing arm of Sumitomo Mitsui Financial Group and Shinsei Bank submitted binding bids this month and will both continue discussions with GE for its commercial lending and leasing operation.

The deal is valued to be worth approximately $5 billion, the newspaper said.

In April, the company said it would shed most of its finance unit and become a “simpler” industrial business.

Before its decision, some analysts worried that GE had become an unwieldy hybrid of banking and manufacturing.

GE is rapidly restructuring its businesses and plans to buy back $50 billion of its shares.

The company is also selling nearly $30 billion in real estate assets over the next two years. GE is also divesting more GE Capital operations.

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The company is not commenting on the bids at this time.