As soon as General Electric Company (NYSE:GE) announced the sale of one of its lending units, a lot of firms had shown their interest in buying it. As per the reports, KKR and Blackstone Group LP (NYSE:BX) have decided to join hands together for this lending unit. KKR, Blackstone, Ares and Apollo are among five different groups that have shown interest in buying the lending arm of GE which is priced as much as $16 billion.
What’s Next:
The information was revealed by people who are familiar with this matter on a condition of not revealing their names as this information is very sensitive in nature. Sun Trust Bank and other four private equity groups had placed their bids on Thursday when the bid opened. However, the final output of the bidding process hasn’t been revealed yet.
GE owns one of the largest lending arms in the world with assets worth more than $200 billion. If taken into consideration its valuation at a time when the market is set to touch new heights, this lending arm can prove to be the crown jewel in the market. By owning the lending arm of GE, one cannot only take advantage of the growing market conditions, but also ensure a stable performance in U.S. market.
Jeff Immelt, Chief Executive Officer, General Electric Company (NYSE:GE) announced in the previous month that GE group would spin off or sell the maximum of GE Capital to ensure that the rest of the company could work well. He said that GE Capital was putting a negative impact on the entire GE Group; hence, it had become necessary to sell this unit and focus on the remaining business units.
Immelt further added that GE had already sold most of the real estate assets to Wells Fargo and Blackstone for $26.5 billion, and now it wanted to return to its industrial roots completely.
