Blue Chip Bulletin: Standard Chartered buys GE division
Joe McGrath, 24 January 2011
Standard Chartered has confirmed the acquisition of GE Money’s specialist car and personal loans business in Singapore.
As at 31 December 2009, the gross assets of the business were valued at £1,147.3 million (SGD 2,350 million).
The acquisition further strengthens Standard Chartered’s operations in Singapore and will now be subject to regulatory approval due to complete by the end of the first quarter of 2011.
In a market statement, Rahul Gupta, president of GE Money Singapore, said today’s acquisition was good news for customers, employees and the business.
He explained, ‘The opportunity to become part of Standard Chartered’s established and growing presence is a good outcome.’
With the FTSE 100 witnessing a marked sell-off in the Financials sector, today’s deal had little impact on Standard Chartered’s share price with analysts noting the size of assets as negligible in the grand scheme of the bank’s business.
The Singapore lending business was previously a wholly owned subsidiary of GE Capital which sold its Hong Kong-based consumer finance business to Standard Chartered at the start of last year.
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