FAIRFIELD, Conn. (AP) — General Electric Co. is selling its U.S., Mexico, Australia and New Zealand fleet businesses to Element Financial Corp. for $6.9 billion.
GE Capital Fleet Services provides commercial car and truck financing and fleet-management services. GE recently announced it would sell most of GE Capital over the next two years.
GE Capital Chairman and CEO Keith Sherin said in a written statement that the company is on track to sell off businesses worth about $100 billion by the end of the year and expects to be finished with the sales by the end of 2016.
Element Financial is a fleet management and equipment finance company. GE Capital sold its Canadian fleet business to Element in 2013.
The U.S. and Mexico deal is expected to close in the third quarter, while the Australia and New Zealand transaction is targeted to close in the fourth quarter.
The Fairfield, Connecticut-based company also said Monday that it has a memorandum of understanding for the possible sale of its European fleet businesses to BNP Paribas subsidiary Arval. If approved, the deal is expected to close in the fourth quarter.
BNP Paribas, through Arval, specializes in vehicle leasing.
The transactions don't include GE Capital's fleet business in Japan.