GE Capital, the financial services division of General Electric Co. (NYSE: GE), announced today that its wholly-owned bank affiliate, GE Capital Financial Inc. is acquiring MetLife Inc.'s (MET) U.S. retail deposit business as GE moves into online banking.
The deal consists of approximately $7.5 billion in U.S. deposits and an established online banking platform.
Approximately $3 billion in custodial deposits associated with MetLife's forward mortgage business and certain other deposits are not included in the transaction, but will be transferred out of MetLife Bank over the next six months.
"This acquisition fits with our plans to launch a U.S. deposit platform," said Dan Henson, president and CEO of GE Capital, Americas. "It accelerates our timing, helps us build a stronger and more cost efficient funding base, and allows us to better serve our middle market commercial customers."
The transaction is targeted to close in mid-2012, pending regulatory approvals. Financial terms of the transaction were not disclosed.