RBS bank says will sell French unit to GE Capital
State-controlled lender Royal Bank of Scotland said on Tuesday that it will sell its French factoring division to GE Capital, the financial services wing of US giant General Electric.
"The Royal Bank of Scotland Group plc has agreed the sale of RBS Factor SA to GE Capital," the bank said in a statement.
Factoring is the process whereby money is advanced to businesses, as a proportion of revenue from invoices issued. The debt is reassigned to the factoring company, which enables them to collect it.
RBS, which had sold already its German factoring division to GE Capital in March, did not disclose how much will be paid.
Both deals are subject to regulatory approval and expected to complete by the third quarter of 2010.
RBS added: "As part of the group's strategic plan, announced in February 2009, this business was placed in the non-core division while the group sought a new owner with a long term commitment to the factoring sector in France."
"This follows the announcement earlier this year of the sale of the RBS factoring business in Germany to GE Capital.
"The sales complete the disposal of our factoring businesses in continental Europe and represent further progress against the RBS strategic plan.
"The group continues to advance on a number of fronts in the disposal of its non-core assets."
In Europe, factoring market volume was close to 1.0 trillion euros in 2008, according to GE Capital.
RBS is 83-percent owned by the British government after receiving a huge bailout amid the devastating global financial crisis.
© 2010 AFP