GE Capital to buy Metlife's US retail deposit arm
General Electric's financial branch is to acquire part of MetLife.
Merger and acquisition consultants may have been on hand at negotiations between General Electric (GE) and Metlife recently.
GE Capital Financial has agreed to buy MetLife's retail deposit unit in a transaction that should be complete by the middle of 2012 if it receives regulatory approval.
The sale will see GE Capital take on $7.5 billion (£4.8 billion) of MetLife Bank's $10.7 billion in deposits in what chief executive officer and president of GE Capital - Americas Dan Henson claimed is a deal that will help his company grow.
"It accelerates our timing, helps us build a stronger and more cost efficient funding base and allows us to better serve our middle market commercial customers," he stated.
Another $3 billion in custodial deposits will also be moved away from MetLife Bank over the next half a year but are not included in the arrangement with GE Capital.
Shares in MetLife had increased by 0.3 per cent by the close of trade in the US yesterday (December 27th), while GE Capital had lost 1.2 per cent.
Posted by Ron Maverick
Source: GE press release, MetLife press release, December 27th