GE Consumer Finance, the Irish-based consumer lending unit of General Electric, has agreed to purchase DeltaBank, a Moscow-based consumer bank, for an undisclosed sum. Analysts estimate the deal could be worth up to €150 million, writes Siobhan Creaton, Finance Correspondent.
DeltaBank's majority shareholders are the Delta Russia Fund and the US Russia Investment Fund which are both managed by Delta Capital Management. The transaction is subject to regulatory approval and is expected to be finalised in the fourth quarter.
The bank was founded in 2000 and provides a variety of consumer finance products through branches and more than 70 embedded points of sale in established retail outlets, such as IKEA and other major retailers. It is a leading issuer of visa cards in the Russian market. It also provides personal loans and sales finance.
GE Consumer Finance president and chief executive Mr Dan O'Connor said the bank was an excellent vehicle to become an immediate and significant participant in the Russian consumer finance market.
"Our global experience and risk management expertise, combined with our demonstrated success in emerging economies such as Eastern Europe and India, will give us a springboard for success in Russia and provides us with an excellent opportunity to grow in a strategically important market," he said.
GE Consumer Finance has expanded in eastern Europe over the last decade and operates in 20 countries.
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