GE to sell Japanese unit to SMFL

The $4.8bn transaction follows the sale of General Electric’s European mid-market financing business to the Japanese banking group in June.

General Electric has agreed to sell its commercial lending and leasing business in Japan to Sumitomo Mitsui Finance and Leasing (SMFL) for around $4.8 billion.

The business includes capital finance, fleet service and vendor finance. SMFL is a member of the Japanese banking group Sumitomo Mitsui Financial Group.

The transaction includes employees of the business and represents aggregate GE ending net investment of approximately $4.6 billion, the firm said in a New York Stock Exchange announcement. The deal is expected to close in April 2016.

Since GE said it was shedding most of the assets linked to its mid-market financing business GE Capital in April, deals to date amount to roughly $154 billion.

“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 chief executive officer. 

“This is our second transaction with the broader Sumitomo Mitsui Financial Group and we were happy to work with them again.”

GE sold its European private equity financing unit to Sumitomo Mitsui Banking Corporation in June for $2.2 billion.
SMFL is one of Japan’s largest leasing companies. The firm is developing its business overseas including in China, South-East Asia and the United States.

GE is refocusing on its industrial businesses and will retain financing verticals that relate to those areas.

Morgan Stanley acted with Mitsubishi UFJ Morgan Stanley Securities to provide GE financial advice. Nagashima Ohno & Tsunematsu also acted as advisor.