GE Sells GE Capital Businesses With ENI Of $30 Billion To Wells Fargo

By Tomi KilgoreMarketWatch Pulse

General Electric Co. said it reached a deal to sell GE Capital's commercial distribution finance and corporate finance businesses, with ending net investment (ENI) of $30 billion, to Wells Fargo & Co. The sale, which includes about 3,000 employees, is expected to be completed in the first quarter of 2016. GE said the deal will contribute about $4.2 billion of capital to the target of $35 billion of dividends GE Capital is expected to be paid GE. "This is our largest transaction to date and a critical step in our efforts to reduce the size of GE Capital," said GE Capital Chief Executive Keith Sherin. "Since our April 10 announcement, we've signed more than $126 billion in transactions, which is over 60 percent of our overall plan, and are on track to become less than 10 percent of GE's earnings as the company transitions to a more focused digital industrial company." GE's stock, which slipped 0.5% in premarket trade, has climbed 11% year to date, while the Dow Jones Industrial Average has lost 3.9%.

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