Chase Sells Leasing Unit to G.E., Others
NEW YORK (AP) _ Chase Manhattan Bank will sell $2.2 billion in assets from its leasing unit to General Electric Capital and three other companies, a move designed to strengthen Chase’s balance sheet.
Under the deal, Chase agreed to sell most of its U.S. and Canadian assets held by the Chase Manhattan Leasing Co.
Chase is selling off its so-called vendor leasing business, which provides financing for manufacturers and distributors of office equipment, computers and industrial equipment. The New York-based bank will retain its corporate leasing business for such big ticket items as aircraft and large capital projects, said Steve Rautenberg, Chase spokesman.
General Electric Capital agreed to buy $1.1 billion of assets from Chase’s technology equipment finance division, with offices in Canton, Mass. and Moberly, Mo. GE Capital, based in Stamford, Conn., is a large diversified financial services company with more than $74 billion in assets.
″The acquisition significantly strengthens our leading position in providing sales financing programs to manufacturers and distributors in the computer and office equipment markets,″ said Thomas H. Mann, vice president and general manager of GE Capital Vendor Financial Services.
The other companies buying Chase’s leasing business include Associates Corp. of North America tentatively agreed to buy $900 million in assets from Chase’s industrial equipment finance company in Buchanan, Mich. C.I.T. Group Equipment Financing Inc., a subsidiary of the world’s largest babnk, Dai Ichi Kangyo Bank Ltd. of Tokyo, bought $130 million of assets from Chase’s aircraft financing company in Lakeland, Fla.
And Confederation Leasing Ltd. of Toronto bought $80 million of assets of Chase Manhattan Leasing Canada Ltd. Confederation is controlled by Confederation Life Insurance Co., Canada’s largest life insurance company.
The deal will reduce Chase’s level of risk assets, thereby freeing up money set aside in reserves for other uses.