The financial arm of General Electric Company (NYSE:GE) is up for grabs and Apollo Global Management LLC (NYSE:APO) and KKR & Co. L.P. (NYSE:KKR) are already in pursuit with their bids.
General Electric has been on a mission to dispose of most of its assets to get back to its core business. The financial arm of the banking division is one of the assets that are available for sale. The business is worth $11 billion. According to undisclosed sources, the two firms have ben been seeking to acquire the unit, and they submitted their bids two weeks ago. GE is expected to select the winning bid by the end of this month.
According to the sources, the $11 billion financial unit handled credit for manufacturers and retailers. It is part of the overall assets worth $40 billion that GE started to sell as of June this year. It is all part of the company’s CEO Jeffrey Immelt’s idea to scale down, tidy up and focus on the company’s main business that is manufacturing.
GE recently managed to sell its transportation and finance division to the Bank of Montreal. The disposed unit was also part of the property to be disposed of. Some other units have been sold since the company announced the plans in June. GE has also been contemplating on opportunities to sell the remaining property as altogether to one buyer. Currently, the firm is left with its equipment leasing unit, inventory finance and a lending facility for midsized companies. General Electric Company (NYSE:GE) has not yet ruled out the possibility of selling them as one unit. However, it will cost some serious coins because the units are each worth more than $8 million.
Once GE is one divesting its massive portfolio, it will have gotten rid of strict regulations that it had accrued as diseconomies of scale due to its massive size. None of the spokespersons from three companies has been available to make any comment regarding the deal.