NYSE-listed US banking and financial services holding company Wells Fargo & Company (WFC) has completed the acquisition of the purchase of the Asia segment of GE Capital’s Commercial Distribution Finance (CDF) business. Financial terms of the deal are undisclosed.
The deal sees Wells Fargo also purchasing GE Capital’s CDF and Vendor Finance platforms, as well as a portion of its Corporate Finance business. In March 2016, Wells Fargo announced it completed the purchase of the North American CDF businesses. The Europe, Middle East and Africa (EMEA) segment will also close later this year.
The acquisition of the Asian CDF assets and 46 team members strengthens its presence in markets where Wells Fargo currently operates in the Asia Pacific (APAC), with the exception of Australia and New Zealand. These deals are expected to close later this year.
According to a press release, CDF provided financing for more than 40,000 dealers and more than 2,000 distributors and manufacturers globally in 2015. It provides inventory financing solutions, services and intelligence through in-depth industry expertise and commitment. This includes inventory and accounts receivable financing, asset-based lending, private label financing, collateral management, and related financial products.
The acquisition sees its merged into Wells Fargo’s CDF business line and expands its reach in Asia. Currently, Wells Fargo claims to have $1.8 trillion in assets.
Chris Wohlert, CDF Asia Business Leader, said, “Asia is an important global market for the CDF business and our customers, and we’re excited to become part of Wells Fargo. We’re confident this will be a seamless integration, and we will continue to provide our customers with excellent service and support.”
With the strength of Wells Fargo, over time, we can also offer our customers a broader selection of financial products and services to help them be even more financially successful,” he added.
Currently, Wells Fargo has 1450 Wholesale banking team members in Asia to service its corporate, commercial and financial institution customers doing business across the region.
With branches in Beijing, Hong Kong, Seoul, Shanghai, Singapore, Taipei and Tokyo, and representative offices in nine other cities, Wells Fargo currently operates 12 lines of business throughout Asia. The divestment of the CDF business to Wells Fargo by GE Capital is part of restructuring efforts by the General Electric conglomerate to restructure.
Commenting on the decision to scale down the firm – which resulted in the sale of the CDF business – Keith Sherin, CEO and chairman of GE Capital, stated: “This decision is a result of the transformation of GE Capital into a smaller, safer financial services company that meaningfully contributes to the success of GE’s industrial businesses.”
For GE Capital, the divestment will see its narrow its focus on supporting industrial businesses.