GE selling health care fi­nance unit, loans to Cap­i­tal One

The China Post - - WORLD BUSINESS -

Gen­eral Elec­tric is selling its health care lend­ing unit and re­lated loans to Cap­i­tal One for roughly US$9 bil­lion as it shrinks its GE Cap­i­tal fi­nance busi­ness.

GE an­nounced in April that it would sell most of the as­sets in the GE Cap­i­tal sub­sidiary as it fo­cuses on in­dus­trial busi­nesses — mak­ing large, com­pli­cated equip­ment for other com­pa­nies.

In­vestors had long pushed for the Fair­field, Con­necti­cut, com­pany to get rid of its fi­nance unit, even though it has been prof­itable, be­cause it is dif­fi­cult for in­vestors to un­der­stand and it car­ries risk.

The health care fi­nan­cial ser­vices unit in­volved in Tues­day’s an­nounce­ment pro­vides cap­i­tal fi­nanc­ing to U.S. health care com- pa­nies, de­vel­op­ers and oth­ers.

McLean, Vir­ginia-based Cap­i­tal One said Tues­day that the ac­qui­si­tion will help add to its ex­ist­ing health care lend­ing busi­ness, which it has been build­ing out for the past sev­eral years.

The deal is ex­pected to close in the fourth quar­ter.

Sep­a­rately, GE said Tues­day that it is selling US$600 mil­lion of the unit’s real es­tate eq­uity in­vest­ments to another buyer.

GE has struck a num­ber of ma­jor deals re­cently. It wants to sell its ap­pli­ances unit and a pri­vate eq­uity busi­ness. It spun off its con­sumer credit card busi­ness, Syn­chrony Fi­nan­cial, into a sep­a­rate pub­licly traded com­pany last year, and com­pleted the sale of NBC Uni­ver­sal to Com­cast in 2013.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.