FAIRFIELD , Conn., Oct. 13 (UPI) — In a $32 billion deal, General Electric Co. announced Tuesday it will sell the remainder of its commercial lending and leasing business to Wells Fargo & Co.
The sale divests GE of the largest remaining part of GE Capital, its finance division. While it reliably accounted for half of GE’s profits, its risks have concerned investors and tamped down GE stock.
General Electric is on a path to return to its primary business, manufacturing.
With Tuesday’s announcement, GE has sold off the majority of its lending business. The sale includes $32 billion in assets and a division employing 3,000 people. What remains includes a $5 billion franchise financing department, which is expected to be sold by the end of 2015.
The transfer of the commercial lending and leasing business to Wells Fargo is expected to be completed by the end of the first quarter of 2016.
“This is our largest transaction to date and a critical step in our efforts to reduce the size of GE Capital,” noted GE Capital Chief Executive Keith Sherin.
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