GE (NYSE: GE), through its GE Money and Commercial Finance
business units, and Banco Santander have reached a non-binding
agreement on the acquisition of certain businesses from each other.
The transactions are valued at approximately EUR 1 billion.
Under the terms of the preliminary agreement, Banco Santander will
acquire GE Money´s businesses in Germany, Finland and Austria, and its
card and auto businesses in the UK, while GE Commercial Finance will
acquire Interbanca, the Italian commercial bank assigned to Santander
as part of the distribution of assets following the acquisition,
together with Royal Bank of Scotland and Fortis, of ABN Amro.
Banco Santander expects to integrate the GE Money units acquired,
with total assets of EUR 9 billion, into Santander Consumer Finance
and Santander Cards. Interbanca would become part of GE Commercial
Finance, providing GE with an enhanced capability to service
mid-market banking businesses in Italy.
"We believe this agreement is in the best interest of GE Money,
our individual businesses, and GE´s shareholders, and allows us to
optimize our portfolio for continued growth and investment, while
meeting one of GE´s strategic objectives of redeploying capital within
financial services," said William H. Cary, President & CEO of GE
Money.
"This transaction will enable Banco Santander to continue
consolidating Santander Consumer Finance as one of the industry´s
leaders in Europe," said Magda Salarich, Senior Executive
Vice-President and head of the Santander Consumer Finance Division.
The transaction is subject to the completion of definitive
agreements and certain regulatory approvals.
About GE Money
With more than $200 billion in assets, GE Money, a unit of General
Electric Company (NYSE:GE), is a leading provider of retail; banking
and credit services to consumers, retailers and auto dealers in 55
countries around the world. With more than 130 million global
customers, GE Money, headquartered in London, UK offers a range of
financial products, including private label credit cards, personal
loans, bank cards, auto loans and leases, mortgages, corporate travel
and purchasing cards, debt consolidation and home equity loans, and
credit insurance. More information can be found at
http://global.gemoney.com.
About GE Commercial Finance
GE Commercial Finance, which offers businesses around the globe an
array of financial products and services, has assets of over $300
billion and is headquartered in Norwalk, Connecticut. GE (NYSE: GE) is
Imagination at Work - a diversified technology, media and financial
services company focused on solving some of the world´s toughest
problems. GE serves customers in more than 100 countries and employs
more than 300,000 people worldwide. For more information, visit
www.ge.com.
About GE
GE (NYSE: GE) is Imagination at Work -- a diversified technology,
media and financial services company focused on solving some of the
world´s toughest problems. With products and services ranging from
aircraft engines, power generation, water processing and security
technology to medical imaging, business and consumer financing, media
content and advanced materials, GE serves customers in more than 100
countries and employs more than 300,000 people worldwide. For more
information, visit the company´s Web site at www.ge.com.
