BMO Financial Group has completed the acquisition of General Electric Capital’s (GE Capital) transportation finance business in the US and Canada, as part of a previously announced deal.
Both the companies have reached an agreement to this effect in September this year.
Upon closing of the deal, GE Capital’s transportation finance business has been renamed as BMO Transportation Finance.
Based in Irving, Texas, BMO Transportation Finance had C$11.9bn ($8.9bn) worth net earning assets, on closing of the deal.
BMO Transportation Finance will continue to operate 11 locations in the US and four in Canada, under the newly appointed head Dan Clark and his management team.
The addition of the transportation finance business will expand BMO Financial’s commercial banking business.
BMO Harris Bank, wholly-owned subsidiary of BMO Financial, president and CEO David Casper said: "We’re welcoming the premier transportation finance business in the industry into BMO Financial Group.
"The trucking industry is vital to the North American economy, and we intend to grow the business, building on the team’s 40-year track record of providing industry expertise to its customers."
With around 47,000 employees, BMO Financial has $642bn worth of total assets as of 31 October 2015. It provides a wide range of retail banking, wealth management and investment banking products and services to more than 12 million customers.
Meanwhile, GE completed the sale of its healthcare financial services in the US to Capital One, in a previously announced deal that is valued at around $8.3bn.
GE has also recently closed the sale of its consumer finance business in Australia and New Zealand to a consortium comprising Värde Partners, KKR and Deutsche Bank for $4.3bn.
Image: BMO Bank of Montreal head office in Montreal, Canada. Photo: courtesy of Dickbauch.