GE Money sold to BDO

Banco De Oro Unibank, Inc. and GE Capital have agreed to transfer GE Money Bank in the Philippines to BDO.

As part of the agreement, GE will also make a strategic investment in BDO by acquiring a stake of approximately 1.5 percent with an option to further increase its holdings up to 10 percent. Both transactions are subject to closing conditions, including regulatory approvals, and are expected to be completed within the third quarter of 2009.

"With GE’s expertise in the financial sector, we hope this partnership will ultimately provide our customers with better consumer products and flexible financing solutions," said Teresita T. Sy-Coson, Chairperson of BDO.

The consolidation of GEMB’s business into BDO, including its 30,000 customers, 350 employees and network of 31 branch licenses and 38 ATMs nationwide, will enable BDO to accelerate the growth of its consumer banking business. In addition, GE will bring considerable value in the form of marketing, risk management and operational expertise.

According to Mark Arnold, CEO of GE Capital Global Banking in Southeast Asia, "BDO’s superior market presence and clear strategy for growth will provide the business with the best opportunities for success. In addition, key customers and depositors will benefit from the best that both Banks have to offer, with greater convenience and a wider range of products and services than ever before."