Toronto-based Element Financial Corp. has entered an agreement with General Electric to acquire GE Capital's fleet business in the U.S., Mexico, Australia, and New Zealand for $6.9 billion.
Separately, GE signed a provisional agreement with Arval, a subsidiary of BNP Paribas, to sell the European portions of the business. GE Capital's fleet business in Japan has been excluded from the transaction.
“We continue to demonstrate speed and execution on our strategy to sell most of the assets of GE Capital,” said Keith Sherin, GE Capital's chairman and CEO. “We are on track to execute sales of $100 billion by the end of 2015 and expect to be substantially done by the end of 2016,” he added.
GE Capital Fleet Services manages more than 1.5 million leased, serviced and managed vehicles around the world. GE Capital sold its Canadian fleet business to Element in 2013.
If Element closes the deal, it would make for the second fleet management company acquired by the Canadian equipment financial in the past year. Element Financial acquired the Arval fleet management unit from PHH Corp. for $1.4 billion.
“Both Element and Arval are invested in and committed to growth in the fleet industry and our customers will benefit from their strength and expertise,” said Sherin.
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