GE to Buy Merrill's Commercial Finance Arm
GE Capital plans to buy most of Merrill Lynch's (MER) commercial finance business for an undisclosed sum, the two companies said Monday.
The move will give GE Capital, the finance arm of General Electric (GE), an additional $10 billion in assets and $5 billion in commitments to its current base of $260 billion.
The purchase includes Merrill's corporate finance, equipment finance, franchise, energy and health care finance units. Merrill's commercial real estate finance division isn't included in the deal.
The deal comes as Merrill is grappling with billions of dollars worth of writedowns from the subprime mortgage mess."This transaction reflects Merrill Lynch's continued strategic focus on divesting non-core assets and optimizing capital allocation, while also enabling the redeployment of approximately $1.3 billion of capital into other parts of our business," said John Thain, Merrill's newly installed chairman and CEO. The transaction is expected to close in the first quarter of 2008.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV