General Electric Company (NYSE:GE) has reached an agreement to sell its U.S. health care lending business and a large bundle of loans to Capital One Financial Corp. for about $9 billion as part of its effort to narrow its operations.
The conglomerate had said in April that it was selling the bulk of GE Capital, the giant finance business that had long accounted for about half of its profit. The deal with Capital One, which is anticipated to close in the fourth quarter, comprises about $8.5 billion of health-care related loans.
GE has said it intends to have pacts set up to sell $120 billion to $150 billon in assets by the end of the year and has now signed deals for about $78 billion worth of asset sales associated with its lending business. The healthcare business supplies funding to developers, investors and businesses across various sectors of the industry, including medical offices, hospitals, senior housing, outpatient services, pharmaceuticals and medical devices.
Darren Alcus, CEO of General Electric Company (NYSE:GE), will join Capital One as president of the health-care finance business. Individually, GE said it has signed an arrangement with a different buyer to sell about $600 million of real estate equity investments.
The choice to leave finance and refocus on its industrial business is the most momentous shift of the multiyear realignment of the company he inherited nearly 14 years ago of Jeff Immelt.
Among other recent deals, GE has agreed to sell $26.5 billion worth of office buildings and commercial real estate debt to Blackstone Group LP, Wells Fargo & Co. and other buyers, and unveiled plans to sell its U.S. private equity-lending unit to Canada’s biggest pension plan in a deal valued at $12 billion.
The company last month reported solid results from its industrial companies thanks to strength in the U.S. market and demand for jet engines and gas-powered electrical turbines.
General Electric Company (NYSE:GE) belongs to Industrial Goods sector. Its net profit margin is -4.50% and weekly performance is -0.73%. On last trading day company shares ended up $25.71. General Electric Company (NYSE:GE) distance from 50-day simple moving average (SMA50) is -3.66%.