US industrial conglomerate General Electric Co is selling its Japan commercial lending business to Sumitomo Mitsui Finance and Leasing for about USD 4.8 billion.
The deal, announced today 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.
General Electric, based in Fairfield, Connecticut, has been focusing on industrial businesses, based on making large complicated equipment for other companies, and shrinking its other businesses that focus on finance.
The largest change involves selling most of GE Capital’s assets, including USD 26.5 billion in real estate assets.
Sumitomo Mitsui, one of Japan’s biggest leasing companies, has been expanding abroad, including China, Southeast Asia and the US.
“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, including employees of the business.
The sale is subject to regulatory approval.