GE Equipment Finance will be integrated into General Electric’s UK bank group with an ability to maintain and service pan-European accounts, according to its UK managing director.
On Monday, GE exclusively told Leasing Life that it will ‘retain and grow’ its UK equipment finance business.
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Further to Tuesday’s news, GE UK Equipment Finance managing director Gabriele D’Uva told Leasing Life the UK equipment finance arm would become "’a standalone UK-focused asset leasing business, building on its strong industry expertise and capabilities."
No plans are in place for any other European countries to maintain an equipment finance arm as the UK business will cover pan-European accounts.
D’Uva said: "Through the thorough evaluation of the implications of the 10th April announcement, we have reassessed the sale of the Equipment Finance UK business. For financial and strategic reasons, Equipment Finance UK will not form part of the GE Capital divestment process and will become part of the UK Bank Group.
"Equipment Finance UK can run as a standalone UK focused asset leasing business building on its strong industry expertise and capabilities. This allows us to build a balanced portfolio and align to GE’s strategic intentions in the UK."
However, It is unclear whether the regulatory issues that provoked the wholesale GE global divestment process, after US regulators termed GE Capital as ‘systemically important’, will still apply to the restructured arrangement.
"GE Capital, and all of its components and assets, remains systemically important until such time that it is de-designated", said D’Uva.
Additional reporting by Sotiris Kanaris
