American Express Co. put up $1.1 billion in cash to buy General Electric Co.'s Corporate Payment Services, the firm's commercial credit card and corporate purchasing unit.
The Deal reports the purchase is in line with AmEx's attempts to focus on its traditional card business, including the card payment operations. GE is also divesting its consumer finance businesses in the U.K. and Germany.
The moves mark a shift in strategy for the Fairfield, Conn.-based conglomerate.
William Cary, head of GE's consumer lending unit,
told Bloomberg GE Money is departing from slowing or stalled credit card markets such as those in the U.S. and U.K. to focus on developing markets like Poland and India and that the company also is looking to certain Western markets including France where its mix of products yields higher growth.
In a
preliminary agreement reached Thursday, Banco Santander SA will acquire GE Money businesses in Germany, Finland and Austria and its card and auto financing businesses in the U.K. In return, GE Commercial Finance will acquire Interbanca. The total value of those deals is €1 billion ($1.6 billion).
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