Cerberus makes final bid for GE Money Bank

GE Capital is selling off most of its businesses to let GE focus on its industrial operations.  

Cerberus Capital Management is slated to buy GE Capital's French consumer finance arm, the latest in a sell-off of the Fairfield, Connecticut-based behemoth's European businesses.

GE Capital announced the binding offer for GE Money Bank on Thursday (23 June). While the firm did not release a purchase price, it said net investment for the first quarter 2016 will be $4.6 billion including to the sale. GE Money Bank's $2 billion prime mortgage portfolio will be sold separately.

According to the statement, the sale is expected to close by the end of the year and is subject to “customary conditions,” which include passing the necessary regulatory and antitrust tests.

The possible sale comes amid GE Capital dumping many of its operations not central to GE's industrial businesses. The Cerberus bid brings total transactions announced by GE Capital to $177 billion.

Earlier this month, PDI learned that Incus Capital, a Madrid-based specialised credit firm, bought a €80 million ($90 million) GE Capital Portuguese mortgage loan portfolio . The purchase marked Incus' credit fund's second acquisition from GE Capital; in December Incus purchased €35 million ($38.9 million) worth of Spanish leasing assets .

In March, AnaCap Financial Partners and Arrow Global Limited bought a €127 million Dutch loan portfolio from GE Artesia, a GE arm bought by apparent former GE Capital affiliate GE Commercial Finance in 2006.

The European sales is a trend that will continue, as GE Capital chief executive officer and chairman Keith Sherin said the remaining businesses GE plans to get rid of are mainly in Europe.

Cerberus declined additional comment. A GE spokesman was not available for further comment.