General Electric

(GE) - Get Report

will pay $2.3 billion to buy the structured finance arm of the Swiss engineering conglomerate

ABB

.

GE's newly minted commercial finance arm is spending $400 million for the equipment-finance outfit's equity and paying out another $1.9 billion to cover existing debt. It will take over the obligation on another $1.2 billion in liabilities.

The transaction, which excludes ABB Export Bank, ABB's Financial Advisory services, its 35% stake in Swedish Export Credit Corp. and its aircraft leasing business, is subject to customary regulatory approvals.

GE lost 6% to $28.46 Tuesday.