GE To Sell Japanese Consumer Finance Division

by Heather

General Electric (NYSE:GE) recently announced plans to sell their Japanese consumer finance division to Shinsei Bank for an estimated $5.4 billion dollars.

General Electric did consumer financing and loans under the name Lake. They offered credit card and mortgage products, but with weakened credit markets and stiffer lending regulations the conglomerate has switched directions and is trying to focus on their “core business”, which is no longer lending in Japan.

Shinsei President Thierry Porte said in a press conference

“This marks our largest acquisition to date and is the biggest step we have taken towards our goal of redefining and modernizing consumer finance in Japan.”

General Electric also put their appliance division on the market in an effort to streamline their business model. The company has been under scrutiny from analysts and stockholders because of their vast operations that include the manufacture of jet engines to media and everything in between.

The sale is expected to close by the end of September, 2008.