GE has inked a pact for selling its fleet operations in the US, Mexico, Australia and New Zealand to Element Financial Corporation for $6.9bn, as well as divested its European fleet businesses to BNP Paribas arm Arval.
While the transactions are subject to customary regulatory and other local corporate or antitrust go-aheads, Arval and GE will consult with their works councils. GE Capital's Japanese fleet business is exluded from the current deals.
Both the transactions total $8.6bn of ending net investment (ENI), with around $6bn to Element and $2.6bn to Arval. With this, GE Capital's total announced sales stands at $63bn on way to executing sales to the tune of $100bn by this year-end.
Post-completion, the transactions would provide around $1.8bn to the overall target of around $35bn worth dividends to GE.
GE Capital chairman and CEO Keith Sherin said: "We continue to demonstrate speed and execution on our strategy to sell most of the assets of GE Capital.
"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...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."
GE Capital Fleet Services offers commercial car and truck financing and operates fleet management services units, involving over 1.5 million leased, serviced and managed vehicles around the world.
Element Financial Corporation is among premier fleet management and equipment finance companies in North America. BNP Paribas, operating through its arm Arval, provides service vehicle leasing across 25 countries and 14 other nations via networks including a global partnership with Element.
GE Capital earlier sold its fleet management operations in Canada to Element in 2013.
