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CIT Group Acquires HSBC Assets

The Tyco International spinoff is buying the U.S. factoring operations of the U.K. banking giant.
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CIT Group

(CIT) - Get CIT Group Inc. Report

Wednesday said it had acquired the U.S. factoring assets and liabilities of the U.K banking giant

HSBC

for an undisclosed sum.

According to the two companies, the assets have a value of $1 billion before assumed liabilities with net assets of $270 million.

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The Livingston, N.J.-based CIT Group, which was spun off last year by

Tyco International

(TYC)

, said the assets complement its commercial and consumer finance businesses.

On the other hand, HSBC said the sale is a result of its new strategy to focus on core U.S. businesses.

CIT shares gained 6 cents to $35.27 Tuesday.