State Bank of India (SBI) and investment firm Carlyle have agreed to purchase GE Capital Group’s entire stake in SBI’s two credit card joint ventures (JVs) – SBI Cards & Payments Services and GE Capital Business Process Management Services.
The deal will take SBI’s and Carlyle’s holdings in each of the two JVs to 74% and 26%, respectively.
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The companies did not disclose the financial terms of the deal, which is expected to be wrapped up by the fourth quarter of 2017 subject to regulatory nod.
SBI managing director (A&S) Dinesh Kumar Khara said: “We welcome Carlyle, our new partner, in the credit card business, and look forward to the new partnership capitalising on the significant opportunities that are opening up in the Indian market, especially in these interesting times of majorly cashless transactions.”
The latest transaction forms part of GE’s plan to simplify operations by selling bulk of GE Capital’s assets and instead focusing on its high-value industrial businesses. As part of this strategy, GE will retain the financing verticals that relate directly to its industrial businesses.
The Carlyle Group managing director Sunil Kaul added: “We are delighted to partner with SBI in this landmark transaction. Carlyle’s deep experience and operating expertise in the financial services sector, and a track record of successful public-private partnerships, will enable us to be a supportive and value-adding partner to SBI Card.”
