Tokyo: US industrial conglomerate General Electric (GE) has sold its Japan commercial lending business to Sumitomo Mitsui Finance and Leasing for about $4.8 billion (Rs 32,150.4 crore).
The deal, announced on Tuesday and to be concluded by April next year, marks the withdrawal of GE Capital from Japan, except for a minor joint venture, according to Akihiro Yoshinobu, spokesman for GE Capital in Tokyo.
GE, based in Fairfield, Connecticut, has been focused on industrial businesses, which are based on making large complicated equipment for other companies, and shrinking its other businesses that focus on finance.
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The largest change involves the sale most of GE Capital’s assets, which includes $26.5 billion (Rs 1.77 lakh crore) in real estate assets.
Sumitomo Mitsui, one of Japan’s biggest leasing companies, has expanded abroad, which includes China, Southeast Asia and the US.
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“We continue to make quick progress on the sale of our international assets and are pleased to sell this business to a company that is committed to growth for our customers and employees,” said Keith Sherin, GE Capital chairman and CEO.
Under the deal, GE Capital will sell Capital Finance, Fleet Service and Vendor Finance, which includes employees of the business.The sale is subject to regulatory approval.