Updated on 13 August 2015
The move will greatly expand Capital One's position in the booming health-care industry, where it is now just a small player
Singapore: General Electric (GE) recently announced that it would sell its US healthcare finance unit to credit card lender Capital One Financial Corp for about $9 billion.
The deal, which includes the sale of healthcare-related loans worth $8.5 billion, brings GE one step closer to achieving its target of shedding about $100 billion worth of finance assets by the end of this year.
Capital One will acquire the operation and about $8.5 billion of health-care-related loans, the companies said Tuesday in statements. The Healthcare Financial Services unit, put on the market this year as GE unloads the bulk of its finance arm, provides mortgages and loans to companies including nursing homes.
The move will greatly expand Capital One's position in the booming health-care industry, where it is now just a small player. As part of the deal, Capital One will get $8.5 billion worth of GE's existing health-care loans.
"This addition will catapult us to a leading market position in providing financial services to the healthcare sector," said Mr Michael Slocum, president of Capital One's Commercial Bank.
Capital One will retain the health-care lender's employees and management team, including President Darren Alcus. Loans to that industry already made up about 5 percent of Capital One's commercial loans, according to company filings.