Deutsche Bank Sells Leasing Unit
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BERLIN (AP) _ Germany’s Deutsche Bank said Monday it is selling a part of its leasing business in the United States to a division of General Electric Co. for about $2.9 billion.
Germany’s biggest bank said it was selling almost all the business of St. Louis-based Deutsche Financial Services to GE Commercial Finance. Deutsche Financial Services has 1,200 employees serving companies in North America and Europe.
GE Commercial Finance, which is based in Stamford, Conn., is buying the businesses through its Vendor Financial Services unit.
The value of the deal includes debt repayments. The sale, which needs regulatory approval, is expected to close in the fourth quarter of this year.
Deutsche Bank chief executive Josef Ackermann said that ``this is an important further step in our strategy to focus on core businesses.″
German banks have been struggling with a slowing economy, weak financial markets and what analysts say are excessively high overheads.
Deutsche Bank has been shedding peripheral businesses with thousands of employees as part of a drive to boost profits.
The sale announced Monday excludes some of Deutsche’s U.S. housing and consumer finance business.