GE Capital is exiting from Japan by selling its commercial lending business to Sumitomo Mitsui Finance and Leasing for approximately $4.8 billion, General Electric Co said on Tuesday.
The deal will be concluded by April 2016.
GE Capital will sell Capital Finance, Fleet Service and Vendor Finance, including employees of the business.
Sumitomo Mitsui, a leading Japanese leasing company, is on an expansion spree entering China, Southeast Asia and the US.
A spokesman for GE Capital said in Tokyo that the company will be left with a small joint venture in Japan after the conclusion of the deal.
The deal is in line with the Fairfield-based conglomerate's strategy to focus on industrial businesses and reduce its lending-related activities, according to AP.
The largest change involves selling most of GE Capital's assets, including $ 26.5 billion in real estate assets.
"We continue to make quick progress on the sale of our international assets and are pleased to sell this business to a company that is committed to growth for our customers and employees," said Keith Sherin, chairman and CEO, GE Capital.
The sale will be subject to approval by regulatory authorities, the AP report added.
The announcement comes a day before the annual review of GE's performance and business outlook to be hosted by Jeff Immelt, chairman and CEO of GE.
On Monday, shares of General Electric Co traded at their highest valuation in more than 10 years, marking a significant change, besides putting pressure on the firm to "show it can drive profits in line with its newfound market premium."
GE shares were trading at 20 times forward 12-months earnings projections, their highest level since 2005, according to Thomson Reuters data.
"There is an expectation that GE, after years of not growing well, will now grow better than many of its peers," said Scott Lawson, vice president of investment management firm Westwood Holdings Group.
