General Electric (GE) has decided to sell most of GE Capital assets and return about $90bn to shareholders by reducing the size of its financial businesses.
Under the plan, the GE Capital businesses that will remain with GE will account for about $90bn in ending net investments (ENI) excluding liquidity including about $40bn in the US.
As part of the execution of the new plan, GE will sell the bulk of the assets of GE Capital Real Estate to funds managed by Blackstone while Wells Fargo will acquire a portion of the performing loans at closing.
GE will consider an additional sale of $4bn of commercial real estate assets while divesting GE Capital operation over the next two years with transactions amounting to a total of about $26.5bn.
GE Capital chairman and CEO Keith Sherin said: "The successful IPO of GE’s retail finance business, Synchrony Financial, and other recent business exits have demonstrated that our financial services assets can be more valuable to others. GE Capital’s businesses are excellent, and this is a great market for selling financial assets."