NEW YORK (TheStreet) -- General Electric (GE) shares are down 1.2% to $26.77 in early afternoon trading on Monday after the company announced the sale of its fleet management division in the U.S., Mexico, Australia and New Zealand to Canada's Element Financial (ELEEF) for $6.9 billion.
The company also signed a memorandum of understanding to sell its European fleet segment to Arval, a BNP Paribas (BNPQY) subsidiary, for what Reuters sources say could be about $3.3 billion.
The asset sales are part of the company's previously announced plans to become more efficient by selling off non-essential GE Capital assets not related to its manufacturing and industrial equipment sector.
Element expects the company to close the U.S. and Mexico deal in the third quarter and the Australia and New Zealand deal in the fourth quarter this year.
Separately, the company announced Friday night that it will meet with European regulators on Thursday to discuss its proposed $14 billion takeover bid for Alstom's (ALSMY) power unit.
The European Commission has warned the company that the deal would harm energy competition in the European bloc.
Insight from TheStreet's research team
Dividend Stock Adviser portfolio manager David Peltier wrote about the company's fleet management sale in a blog post today in Dividend Stock Adviser titled "GE to Reap $6.9 Billion in Asset Sale". Here is what Peltier had to say:
General Electric announced overnight that it's selling the majority its fleet management business for $6.9 billion.