Canada Pension Plan In Talks to Acquire General Electric Financial Unit

The Canada Pension Plan Investment Board (CPPIB) is talking with General Electric about acquiring one of the firm’s financial arms. The deal, if it happens, could be worth $4 billion.

More from Bloomberg:

Canada Pension Plan Investment Board is in talks to buy General Electric Co.’s U.S. private-equity lending business as the company accelerates plans to shed most of its finance operations, people familiar with the matter said.

Canada Pension, the nation’s largest pension-fund manager, is working with Credit Suisse Group AG to arrange financing for a deal that would value the unit’s equity at more than $4 billion, said the people. That price doesn’t reflect liabilities tied to about $14 billion in assets that Canada Pension would assume with the U.S. portion of the so-called sponsor-finance business.

A sale agreement to Canada Pension hasn’t been completed and GE may decide to sell it to other bidders, the people said, asking not to be identified because the details aren’t public.

[…]

In pitching for the sponsors business, the Canadian fund manager has told GE that it would keep the business intact and would like to own it indefinitely, one person said. It also has said it wouldn’t expect to face any regulatory hurdles to a purchase, the person said.

A deal, with or without the CPPIB, could be announced this week, according to GE.

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