General Electric Co. announced Tuesday it will sell its commercial lending and leasing business worth more than $30 billion to Wells Fargo & Co.
The sale is part of a plan announced in April to sell off roughly $200 billion in GE Capital financing assets, which has accounted for half the company's profits but has also weighed on its stock, according to The Wall Street Journal.
"Since our April 10 announcement, we've signed more than $126 billion in transactions, which is over 60 percent of our overall plan, and are on track to become less than 10 percent of GE's earnings as the company transitions to a more focused digital industrial company," GE said.
The businesses changing hands serves the marine, recreational vehicles and motorsports industries as well as sectors including construction and technology, according to Yahoo! News.
The deal also includes the sale of corporate finance's portfolio of senior secured loans and leases.
Experts regard this development as the most important milestone GE has reached, since shedding the lending business will be key in its attempts to avoid oversight from the Federal Reserve.
The transaction is expected to be completed in the first quarter of 2016, GE said, according to Reuters.
Goldman Sachs and Credit Suisse advised GE on the deal.
