General Electric is selling the largest remaining chunk of its U.S. financial services business to Wells Fargo.
While financial information from the deal was not released, it is believed the company will sell $32 billion of assets and transfer approximately 3,000 employees from GE Capitals global commercial distribution finance, North American vendor finance and corporate finance platforms.
“This is our largest transaction to date and a critical step in our efforts to reduce the size of GE Capital,” said Keith Sherin, GE Capital chairman and CEO.
“Since our April 10 announcement, we’ve signed more than $126 billion in transactions, which is over 60 percent of our overall plan, and are on track to become less than 10 percent of GE’s earnings as the company transitions to a more focused digital industrial company.”
Wells Fargo also acquired GE’s railway leasing business in late September.
GE is selling its portfolios and businesses at par or slightly above par because they are performing assets and not distressed, people familiar with the deals said.
Wells Fargo has also been including its value of general client acquisition.
The bank does not require regulatory approval for the deal.
The deal is expected to be completed in the first quarter of next year.