GE Money: Transaction with Dogus, first step towards consolidation

The transaction by which Turkish-based Dogus group took over 49.9% of Motoractive, Ralfi and Domenia Credit from GE Money is the first step towards the consolidation of GE Money’s business in Romania, the retail financial services division of General Electric has recently announced. “This is the first step towards consolidating our financial services platform on the Romanian market. We have had a successful partnership with Turkish-based Dogus since as far back as 2005, when GE Money became a shareholder of Garanti Bank. We believe expanding it to Romania will help us lay the foundation of an even stronger business,” GE Money said in a release. The parties involved did not provide information on the financial terms of the deal. According to Dogus, the three Romanian companies had a cumulated capital of 70 million dollars and assets worth 600 million dollars. “At the end of November 2007, the assets had recorded an over 60% rise against the same time of 2006. Considering the investments we performed this year (2007 i.e.) in products, distribution channels and in the overall business infrastructure, we are expecting to preserve the same accelerated growth pace in 2008, as well,” said GE Money representatives. They also say Garanti is experienced in providing banking services, and GE Money is present in 55 countries around the world. The European Commission approved the takeover of the three Romanian companies by General Electric Capital Corporation and Dogus Holdings at the beginning of December. The division of the American group General Electric entered the Romanian market in the autumn of 2006, when it acquired the leasing company Motoractive Leasing IFN, as well as the consumer credit company Ralfi IFN, which operates under the Estima Finance brand, and the mortgage credit company Domenia Credit IFN. The total value of transactions amounted to 140 million euros.