Oct. 13, 2015, 9:40 AM
- General Electric (GE +0.2%) has agreed to sell the largest remaining chunk of its U.S. financial services business to Wells Fargo (WFC -0.3%), part of the conglomerate’s ongoing bid to slim its operations.
- While the terms of the sale weren't disclosed, the businesses collectively have about $32B of assets.
- "Since our April 10 announcement, we've signed more than $126B in transactions, which is over 60% of our overall plan, and are on track to become less than 10% of GE's earnings as the company transitions to a more focused digital industrial company," GE Capital CEO Keith Sherin said.
- The transaction is expected to close in the first quarter of 2016.
- Previously: Reuters: GE nears deal to sell $30B-plus of loans to Wells Fargo (Oct. 09 2015)
Aug. 27, 2015, 11:57 PM
- Wells Fargo (NYSE:WFC) is the leader in the hunt to buy General Electric's (NYSE:GE) railcar financing unit, in a deal that could come by Labor Day, Bloomberg is reporting.
- Wells Fargo would outpace Sumitomo Mitsui Financial Group in that case.
- The sale is another step in GE's divestment of financial services in order to focus on core manufacturing.
- The railcar financing business has more than $4B in assets.
Aug. 11, 2015, 6:05 PM
Reuters reports Wells Fargo (NYSE:WFC) has begun an auction for its crop insurance unit, and could get over $1B. A spokeswoman has confirmed Wells Fargo is exploring options for the business that may include a sale, while adding the bank plans to keep its crop insurance brokerage arm.
- The business collects over $2B/year in insurance premiums from farmers, and has over 4K licensed agents. Potential bidders are said to include PartnerRe, Axis Capital, and Allianz.
- Low interest rates and extreme weather have weighed on the crop insurance market. Meanwhile, regulatory pressure has led various banks to lower their insurance exposure.
- Reuters reports Wells Fargo (NYSE:WFC) has begun an auction for its crop insurance unit, and could get over $1B. A spokeswoman has confirmed Wells Fargo is exploring options for the business that may include a sale, while adding the bank plans to keep its crop insurance brokerage arm.
Jul. 15, 2015, 2:57 AM
- Wells Fargo (NYSE:WFC) is looking at more financial assets being unloaded by GE Capital after it bought $9B of real estate loans from the conglomerate in the second quarter.
- Portions of GE's commercial loans portfolio "fit nicely with the businesses at Wells Fargo," CFO John Shrewsberry said in an interview.
- He also singled out GE's railcar leasing business, saying it might complement Wells Fargo's First Union Rail.
Apr. 20, 2015, 12:36 PM
- Moving quickly on its promise to get out of the banking business, General Electric (GE -0.2%) is in talks with Wells Fargo (WFC +0.7%) and others to sell its $74B commercial lending division - an operation which makes loans to midsize U.S. companies.
- Should a deal be reached, it would mean GE would have already sold about half of the $200B in assets the company hopes to move off the books in the next two years.
- Source: WSJ
- Previously: WSJ: GE in talks to sell commercial lending business (April 20)
Apr. 20, 2015, 12:16 PM
- Among those GE is reportedly in talks to sell the $74B operation to is Wells Fargo (WFC +0.6%), according to a headline from the WSJ. Wells, along with Blackstone (NYSE:BX) was the buyer of nearly $30B of real estate-related assets from GE ten days ago.
- Previously: GE sets plan to exit almost all of GE Capital; launches $50B buyback (April 10)
Feb. 6, 2014, 12:17 PM
- Ocwen Financial (OCN -9.5%) sinks after WSJ reports New York financial services superintendent Ben Lawsky has halted indefinitely the $2.7B deal to purchase mortgage servicing rights from Wells Fargo (WFC +0.2%) due to concerns over Ocwen's ability to handle more loans.
- The deal, announced last month, would have given OCN the right to service ~$39B worth of loans.
- Other mortgages servicers are dropping too: NSM -3.9%, WAC -3.6%.
Dec. 18, 2012, 9:11 AM
Angling to offer clients more in the way of hedge funds, Wells Fargo (WFC) purchases a 35% stake in Rock Creek Group, a fund of funds firm with $7B in AUM. While Rock Creek is strictly institutional investor territory, it's hard to believe Wells Fargo doesn't have an eye on a retail offering at some point. (PR)| Dec. 18, 2012, 9:11 AM | 1 Comment
Nov. 26, 2012, 4:23 PM
Merit Medical Systems (MMSI) acquires Thomas Medical Products from GE Healthcare (GE) for approximately $167M in cash. MMSI intends to finance the the purchase by expanding it's existing credit facility to $275M, which Wells Fargo Bank (WFC) has committed to provide in a single transaction. The company expects the acquisition to be immediately accretive to net earnings, and expects to take advantage of tax benefits with approximately $43M of net present value.| Nov. 26, 2012, 4:23 PM | 1 Comment
Sep. 24, 2012, 1:42 PM
Sep. 24, 2012, 9:29 AM
CIT Group (CIT) would be an attractive acquisition target for Wells Fargo (WFC), suggests Stifel Nicolaus' Chris Mutascio. Wells' low cost of funds would make a nice combination with CIT's $35B in high-yielding assets, he says, arguing even a purchase price of $52 (a 33% premium) would be a good deal for the buyer.| Sep. 24, 2012, 9:29 AM | 2 Comments
Sep. 5, 2012, 10:01 AM
Wells Fargo (WFC) should think about beefing up its relatively meek credit card operation by buying Discover (DFS), suggests Susquehanna. Even a purchase price of $46/share - half cash, half stock - would be accretive to earnings in the first year and Discover's management has indicated it would be open to the right deal.| Sep. 5, 2012, 10:01 AM | 1 Comment
Apr. 27, 2012, 9:13 AM
Wells Fargo (WFC) gets into the prime brokerage business, buying Merlin Securities for an undisclosed price. Merlin has about 500 hedge fund, family office, and investment adviser clients and about 100 employees. (PR)| Apr. 27, 2012, 9:13 AM | 1 Comment
Feb. 17, 2012, 5:17 AMAlly Financial is reportedly considering a sale of all or part of its auto lending and banking businesses; an IPO is still a possibility, but is looking increasingly remote. Logical buyers for the various pieces include JPMorgan (JPM), Toronto-Dominion (TD), Wells Fargo (WFC) and GM (GM). | Feb. 17, 2012, 5:17 AM | 2 Comments
Jan. 27, 2012, 6:03 AMBNP Paribas (BNOBF.PK) is reportedly attempting to sell up to $11B of loans to oil and gas companies as it looks to bulk up its capital buffers. BNP has has received interest from Wells Fargo (WFC) and other U.S. banks, and has been getting offers with a discount of under 5%. The debt has also attracted potential Canadian buyers. | Jan. 27, 2012, 6:03 AM
Jan. 5, 2012, 5:24 AMChina Development Bank and Japan's Sumitomo Mitsui (SMFG) are the finalists in an auction for RBS's (RBS) aircraft leasing unit in a transaction that could be worth up to $7.5B, Reuters reports. With Wells Fargo (WFC) and a Macquarie (MQBKY.PK) led group dropping out, RBS could disclose the winner next week. | Jan. 5, 2012, 5:24 AM