GE takes control of factoring firm

04/02/2008

General Electric (GE) has revealed that it is set to take control of a Hong Kong-based business that provides factoring finance solutions to companies in the far east.

Since 2001, GE has held a 50 per cent stake in the East Asia GE (EAGE) Commercial Finance company and within a few months the conglomerate will take complete control of the operation under the terms of a newly agreed deal.

EAGE's services are typically offered to small and medium-sized enterprises in various parts of Asia and GE claims that its commercial finance businesses is currently among the largest factoring operations in the world.

Nancy Ku, president and chief executive of GE Commercial Finance in Greater China, commented: "EAGE is a great strategic fit with GE."

"With the synergies between companies, we will have the potential to build a regional trade finance business for Hong Kong and Greater China."

Last week, Faisal Khan from the software development firm 3i Infotech suggested that markets for factoring services throughout Europe have been growing rapidly in recent years.