Sumitomo Mitsui Banking Corporation Europe Limited (SMBCE) has agreed to acquire GE’s European Sponsor Finance business for approximately $2.2bn (€1.98bn).

The acquisition is part of SMBCE parent company Sumitomo Mitsui Banking Corporation’s plan to develop a more diversified portfolio of credit assets.

The credit portfolio, which stood at €2.2bn as of the 31st of May, "is composed of loans for acquisition finance, primarily sponsored by private equity funds which are extended to approximately 100 companies domiciled in European countries", wrote SMBCE’s parent company Sumitomo Mitsui Banking Corporation (SMBC).

GE Capital will retain $1bn investment in the European Senior Secured Loan Programme and European Loan Programme, both joint ventures between affiliates of GE Capital and affiliates of Ares Capital.

According to GE Capital, when the transaction is completed it will contribute approximately $0.4bn of capital as dividends to shareholders.

The transaction is subject to customary regulatory approval and is expected to close in the third quarter of 2015.

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Since the announcement of the sale of most of GE Capital’s assets in April, GE has signed agreements to sell about $23bn worth of its various businesses.

Apart from the sale of European Sponsor Finance business, sales during the quarter include $1.2bn of loans in our UK Home Lending portfolio, plus the previously announced $8.6bn global Fleet Services business and the approximately $11bn U.S. Sponsor Finance business.

In addition, the sale of GE Capital’s Budapest Bank to the Hungarian State closed on June 29 and GE Capital Real Estate closed in total approximately $15 billion of previously announced sales.