The acquisition, expected to close in the first quarter of 2008, will add more than $10 billion in assets and $5 billion in commitments to GE Capital Commercial Finance’s base of $260 billion – and adds to existing businesses GE knows and knows how to operate. GE Capital will buy Merrill Lynch Capital’s corporate finance, equipment finance, franchise, energy and health care finance units.
Mike Neal, vice chairman of GE, said: These strong units fit perfectly with existing and very successful GE Capital businesses. They are in industries we know well, so the potential for growth is compelling. In addition, this timely acquisition will expand our reach, and expand the value we can offer customers.
John Thain, chairman and CEO of Merrill Lynch, added: This transaction reflects Merrill Lynch’s continued strategic focus on divesting non-core assets and optimizing capital allocation, while also enabling the redeployment of approximately $1.3 billion of capital into other parts of our business.
