GE (NYSE:GE) announced today that it has signed a memorandum of understanding (MOU) for the potential sale of its Equipment Finance and Receivable Finance businesses in France and Germany to Banque Fédérative du Crédit Mutuel (BFCM), representing ending net investment (ENI) of approximately US$7.5 billion / EU€6.6 billion. The proposed transaction will be submitted to the relevant works councils for their information and consultation. The completion of the transaction would also be subject to customary regulatory and antitrust approvals.

“We’re pleased to sign this MOU with BFCM for a significant piece of our European business,” said Keith Sherin, GE Capital chairman and CEO. “As we continue to execute on our strategy to significantly reduce the size of GE Capital, we are excited that our long-time partner for French factoring would take forward our CLL business in France and Germany,” he added.

GE Capital’s Commercial Lending and Leasing (CLL) platforms in France and Germany provide factoring and leasing products and services to a broad range of commercial customers. As of 3Q 2015, the platforms had net earning assets (NEA) of respectively US$6.5B and US$3.8B.

BFCM is part of CM11 which belongs to Crédit Mutuel group, the second largest retail bank in France with a strong competitive positioning in home loans, SME and non-life insurance.

As previously announced, GE is embarking on a strategy to focus on its high-value industrial businesses and is selling most of GE Capital’s assets. GE will retain the financing “verticals” that relate to GE’s industrial businesses. The transaction would, if completed, contribute approximately US$1.3 billion of capital to the overall target of approximately US$35 billion of dividends expected to be paid to GE under this plan (subject to regulatory approval).

JP Morgan and Barclays Capital provided financial advice to GE.

About GE

GE (NYSE:GE) is the world’s Digital Industrial Company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive. GE is organized around a global exchange of knowledge, the "GE Store," through which each business shares and accesses the same technology, markets, structure and intellect. Each invention further fuels innovation and application across our industrial sectors. With people, services, technology and scale, GE delivers better outcomes for customers by speaking the language of industry. www.ge.com

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About BFCM & CM11 Group

With more than 4,063 branches CM11 Group is one of the leading French retail banks. BFCM, the group’s holding company, owns and controls the French and foreign operational subsidiaries (insurance, banking, IT, etc.) including CIC, Targobank (in Germany and Spain), CIC Iberbanco (in France) and Cifidis (in France, Belgium, Spain and Portugal). It also manages the funding and liquidity of the group and serves as a vehicle for external growth transactions.

As at 30 June 2015 CM11 Group had €37.5 billion of shareholders’ equity, a common equity tier 1 ratio (as required under CRR/CRD4 without transitional Provisions) of 14.6%, managed €572 billion of deposits and savings and €294 billion of outstanding loans, with net income in 2014 of €2.4 billion. BCFM’s credit rating’s are among the highest levels assigned to French banks.

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