TOKYO: Japan’s Sumitomo Mitsui Banking Corp. is nearing a deal to buy General Electric Co.’s European private-equity finance business, according to people familiar with the matter, another step in the industrial conglomerate’s retreat from banking.
SMBC is expected to pay more than $2 billion for the unit, known as a sponsors unit and which finances buyouts and other transactions for private-equity firms in Europe, said the people. They added that a deal could be announced as soon as Tuesday in Europe.
The Japanese bank prevailed over other bidders, including Apollo Global Management LLC APO, -1.16% and Ares Management LP ARES, -1.64% , they said.
A spokesman at SMBC said nothing specific has been decided at this moment.
A deal comes on the heels of GE’s GE, +0.56% agreement to sell its vehicle-fleet financing businesses in the U.S., Mexico, Australia and New Zealand for $6.9 billion and a separate deal for its European fleet business, both announced Monday.
