London, United Kingdom and Madrid, Spain
-- Santander will Acquire GE Money Businesses in Germany, Finland and Austria and its Card and Auto Financing Businesses in the UK
-- GE Commercial Finance will Acquire Interbanca, the Italian Commercial Bank Acquired by Santander as Part of the Acquisition of ABN
GE (NYSE: GE), through its GE Money and Commercial Finance business units, and Banco Santander have reached a non-binding agreement on the acquisition of certain businesses from each other. The transactions are valued at approximately EUR 1 billion.
Under the terms of the preliminary agreement, Banco Santander will acquire GE Money's businesses in Germany, Finland and Austria, and its card and auto businesses in the UK, while GE Commercial Finance will acquire Interbanca, the Italian commercial bank assigned to Santander as part of the distribution of assets following the acquisition, together with Royal Bank of Scotland and Fortis, of ABN Amro.
Banco Santander expects to integrate the GE Money units acquired, with total assets of EUR 9 billion, into Santander Consumer Finance and Santander Cards. Interbanca would become part of GE Commercial Finance, providing GE with an enhanced capability to service mid-market banking businesses in Italy.
"We believe this agreement is in the best interest of GE Money, our individual businesses, and GE's shareholders, and allows us to optimize our portfolio for continued growth and investment, while meeting one of GE's strategic objectives of redeploying capital within financial services," said William H. Cary, President & CEO of GE Money.
"This transaction will enable Banco Santander to continue consolidating Santander Consumer Finance as one of the industry's leaders in Europe," said Magda Salarich, Senior Executive Vice-President and head of the Santander Consumer Finance Division.
The transaction is subject to the completion of definitive agreements and certain regulatory approvals.
About GE Money
With more than $200 billion in assets, GE Money, a unit of General Electric Company (NYSE:GE), is a leading provider of retail; banking and credit services to consumers, retailers and auto dealers in 55 countries around the world. With more than 130 million global customers, GE Money, headquartered in London, UK offers a range of financial products, including private label credit cards, personal loans, bank cards, auto loans and leases, mortgages, corporate travel and purchasing cards, debt consolidation and home equity loans, and credit insurance. More information can be found at http://global.gemoney.com.
About GE Commercial Finance
GE Commercial Finance, which offers businesses around the globe an array of financial products and services, has assets of over $300 billion and is headquartered in Norwalk, Connecticut. GE (NYSE: GE) is Imagination at Work - a diversified technology, media and financial services company focused on solving some of the world's toughest problems. GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit www.ge.com.
About GE
GE (NYSE: GE) is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.
Source: Business Wire (Business Wire India)