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Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
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Wells Fargo (WFC) Buys GE Capital's CDF business in Asia
With an aim of increasing market share in commercial lending markets, Wells Fargo & Company (WFC - Free Report) completed the acquisition of General Electric Company’s (GE - Free Report) Commercial Distribution Finance (CDF) business in Asia. Notably, Wells Fargo sealed the deal with GE Capital, an arm of the Connecticut based company last October.
The acquisition comprised CDF assets and 46 team members in Asia Pacific markets where Wells Fargo is currently operating. Notably, Australia, the Europe, Middle East and Africa (EMEA) and New Zealand segments closure is likely to take place later this year.
Previously, Wells Fargo had signed an agreement to buy GE Capital’s CDF and Vendor Finance platforms along with its Corporate Finance business. In Mar 2016, Wells Fargo completed the acquisition of commercial lending and leasing businesses in North America. The total purchase includes assets of around $31 billion along with about 2,800 employees.
While the latest deal enhances Wells Fargo’s financial services business, for GE, the move is in line with its efforts to trim down its financial wing and focus more on its core industrial business. Notably, Wells Fargo and The Blackstone Group L.P. (BX - Free Report) helped GE in commencing its finance overhaul in Apr 2015 by agreeing to purchase its real estate assets worth about $23 billion.
Further, with the recent acquisition of GE Railcar Services from GE Capital, Wells Fargo Rail – the railcar finance, leasing and fleet management business of Wells Fargo – became the largest railcar and locomotive leasing company in North America with over 175,000 railcars and 1,800 locomotives.
Wells Fargo currently carries a Zacks Rank #4 (Sell). Enterprise Financial Services Corp. (EFSC - Free Report) is a better-ranked stock in the finance space sporting a Zacks Rank #2 (Buy).
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