The deal is in line with GE’s strategy to offload most GE Capital assets in order to focus on its high-value industrial businesses.
Under the agreed terms, SMFL will acquire GE’s equipment/asset leasing, small-ticket leasing and automotive leasing businesses with total assets worth JPY510bn ($4.2bn).
The acquisition also includes five leasing-related subsidiaries owned by GE Japan.
Subject to regulatory approvals and other customary closing conditions, the transaction is expected to be completed in April next year.
Upon completion of the deal, SMFL will make GE Japan its subsidiary. GE Japan currently serves close to 483,000 companies.
With around 2,358 employees, SMFL is 60% owned by Sumitomo Mitsui Financial Group and 40% by Sumitomo Corporation.
As of 31 March 2015, SMFL has total consolidated assets worth JPY714.6bn ($5.89bn).
SMFL provides leasing and installment sales of a variety of equipment and machinery; as well as loans and factoring.
Sumitomo Mitsui Banking Corporation Europe recently acquired GE’s $2.1bn worth European Sponsor Finance business.
GE had also agreed to divest GE Capital’s $30bn worth commercial lending and leasing businesses to Wells Fargo for an undisclosed amount.
It also agreed to sell $5.8bn worth of first lien mortgage loans from its UK home lending business to an investment consortium led by Blackstone.
Image: Sumitomo Mitsui Finance and Leasing Company headquarters. Photo: courtesy of Jasdaq-Liao / Wikimedia Commons.
