SMBC acquires GE’s European portfolio
(2 July 2015 – Japan) Sumitomo Mitsui Banking Corp (SMBC) president Takeshi Kunibe released a statement on 30 June to report its Europe arm had reached an agreement to acquire the European loan portfolio from GE.
GE Corporate Finance Bank SCA and affiliates of GE Capital, a financial arm of General Electric Company, sold its credit portfolio of approximately US$2.2 billion (A$2.8 billion) (as of 31 May, 2015).
The credit portfolio is reportedly composed of loans for acquisition finance, primarily sponsored by private equity funds, which are extended to approximately 100 companies domiciled in European countries.
SMBC and GE will cooperate to ensure a smooth transfer of assets; they expect the transaction to be completed around the middle of this fiscal year.
SMBC said the deal will accelerate the bank’s continuous efforts to develop a more diversified portfolio of credit assets with higher quality and profitability.
“With the acquisition of this portfolio, SMBC will continue to strengthen and broaden its client base in the European market,” the statement said.
“SMBC aims to further expand its business while diversifying its business portfolio by continuing to provide services and support in fields such as trade finance and cross border mergers & acquisitions transactions among both European and Asian countries, including Japan.”
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