GE Sells Japanese Consumer Finance Business
July 11, 2008 – GE Money announced that it has reached agreement with Shinsei Bank for the sale of its Japanese consumer finance business, including credit cards, mortgages and the personal loan business ‘Lake’ for US$5.4 billion—the sale is expected to close in the third quarter. This divestiture is part of GE’s exit from the consumer finance business particularly in challenging markets; U.S. consumer finance is looking for a strategic partner, the Indian business has been for sale for sometime although no takers. There is also talk of exits in the UK as well as parts of South America. Globally, GE’s strategy seems to have shifted from consumer finance to commercial finance with an overall corporate focus on fast growing emerging markets. In Japan, GE will continue to operate GE Nissen Credit Co. Ltd., the credit card JV with Nissen, a shopping catalogue as well as the commercial finance business which reportedly is strong in Japan and consists of leasing, fleet services, healthcare finance and commercial real estate.
Posted by Ali Raza on Sunday, July 27, 2008