Merrill sells commercial finance business to GE Capital

0 Comments | AFP, December, 2007

WASHINGTON (AFP) — US banking and brokerage titan Merrill Lynch has agreed to sell most of its mid-market commercial finance business, Merrill Lynch Capital, to GE Capital, the two companies announced Monday.

Merrill, which is battling to shore up its finances after suffering multibillion losses on ailing mortgage investments, and GE did not reveal the financial terms of the deal.

The two firms said they hope to close the deal in the first quarter of 2008 and said GE would gain 10 billion dollars in assets and five billion dollars in commitments to GE Capital under its terms.

The business provides commercial finance know how and services to a range of companies covering different industries.

"This transaction reflects Merrill Lynch's continued...