General Electric Company GE recently announced an agreement to sell its fleet businesses based in U.S., Mexico, Australia and New Zealand to Element Financial Corporation for $6.9 billion. Additionally, General Electric signed a memorandum of understanding with Arval – a fully-owned subsidiary of BNP Paribas, for the sale of its European fleet businesses. The transaction is expected to close in the fourth quarter of 2015.
GE Capital Fleet Services provides commercial car and truck financing and fleet management services, with more than 1.5 million leased, serviced and managed vehicles globally.
The transactions are a strategic move on the part of General Electric for divesting assets that no longer fit its long-term strategy and instead focus on high-value industrial businesses. The company expects to achieve a target of $100 billion of sales in 2015. Year-to-date total announced sales are approximately $63 billion. Moving ahead, General Electric believes that the funds from divestiture will provide it adequate flexibility to continuously fund organic and inorganic growth initiatives and maximize return for its shareholders.
General Electric is one of the largest and most diversified technology and financial services corporations in the world. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and industrial products. Its segments include Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Home & Business Solutions and GE Capital.
General Electric currently has a Zacks Rank #4 (Sell). Other stocks that look promising and are worth a look now include Hitachi Ltd. (HTHIY, Shanghai Industrial Holdings Limited SGHIY and Carlisle Companies Incorporated CSL, each carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment