General Electric to sell UK home loans portfolio

The consortium, which also includes TPG Special Situations Partners, and investment manager CarVal Investors, is buying up almost all of GE’s remaining home lending business as it exits the division to focus on manufacturing industrial equipment.

The terms of the deal were not disclosed but it is expected to be closed in December, according to Reuters.

The deal comes as part of GE’s plans to shed assets worth about $200bn from its finance arm, GE Capital, which accounted for 42% of the group’s profit in 2014.

Since announcing in April it would try to reduce the contribution of its GE Capital financing business to less than 10% of earnings, the group has achieved more than $126bn in transactions.

The UK home loan deal will add about $400m of capital to GE’s overall target, the firm said.