General Electric (GE) has signed a memorandum of understanding for the potential sale of its Equipment Finance and Receivable Finance businesses in France and Germany to Banque Fédérative du Crédit Mutuel (BFCM).

The potential agreement, subject to approval by regulatory and anti-trust authorities, will represent an ending net investment of around $7.5bn (€6.6bn).

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Keith Sherin, GE Capital chairman and chief executive officer, said: "We’re pleased to sign this memorandum of understanding with BFCM for a significant piece of our European business.As we continue to execute on our strategy to significantly reduce the size of GE Capital, we are excited that our long-time partner for French factoring would take forward our CLL business in France and Germany."

GE Capital’s Commercial Lending and Leasing (CLL) platforms in France and Germany provide factoring and leasing products and services to a broad range of commercial customers. As of 3Q 2015, the platforms had net earning assets (NEA) of respectively $6.5bn and $3.8bn."

BFCM is part of CM11 which belongs to Crédit Mutuel group, the second largest retail bank in France with a strong competitive positioning in home loans, SME and non-life insurance.

As previously announced, GE is embarking on a strategy to focus on its high-value industrial businesses and is selling most of GE Capital’s assets. GE will retain the financing "verticals" that relate to GE’s industrial businesses.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The transaction would, if completed, contribute approximately $1.3bn of capital to the overall target of approximately $35bn of dividends expected to be paid to GE under this plan (subject to regulatory approval).