General Electric has launched a flurry of bidding and M&A activity since its announcement that it will divest GE Capital and exit the banking industry, and last Thursday (Sept. 10), another piece of GE Capital got snatched up.
In an announcement, BMO Financial Group said it has secured a deal to acquire GE Capital’s Transportation Finance business in an effort to build up its corporate banking unit. The price of the takeover was not disclosed, but BMO Financial said it had net earning assets of about $8.7 billion.
[bctt tweet=”BMO Financial Group said it has secured a deal to acquire GE Capital’s Transportation Finance business.”]
GE Capital Transportation Finance is North America’s largest financier of truck and trailers for the commercial market, reports said. It works with members of the entire supply chain and has worked with equipment manufacturers and vehicle dealers, operating within 11 U.S. locations and four in Canada.
In a statement, BMO Financial highlighted how the acquisition will help bolster its banking and financial services offerings for corporate clients.
According to BMO Financial Group Chief Executive Officer Bill Downe, commercial banking is “a core strength of the bank.”
“This represents a unique opportunity to grow our commercial customer base,” he said. “Our strong capital position provides us with the flexibility to complete this acquisition, which is consistent with our strategy and well-aligned with our risk profile.”
The theme was reiterated by BMO Harris Bank President and CEO David Casper. “This transaction plays to our strength in commercial banking across North America,” he stated. “It brings an industry leader into the BMO fold that has been built on strong industry knowledge, disciplined underwriting, superior technology and long-standing, diverse customer relationships.”
Several institutions around the globe have been vying for a piece of GE Capital. Most recently, Capital One was revealed to have struck a deal to acquire GE Capital’s health care finance operations, while a group of banks in Japan were revealed to also be in the running to acquire GE Capital assets earlier this month.
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