STAMFORD, Conn.--(BUSINESS WIRE)--Furthering its growth strategy in Latin America, GE Money, the consumer lending unit of General Electric Company (NYSE:GE), today announced that it would acquire a minority position in Banco Colpatria - Red Multibanca Colpatria S.A., a consumer and commercial bank based in Bogotá, Colombia. GE Money will acquire a 39.3 percent stake in Red Multibanca Colpatria in two installments, with options to acquire up to an additional 25 percent stake from Mercantil Colpatria S.A. by 2012. The initial purchase, subject to regulatory approvals, is expected to close within the next few months.
"We are excited to be entering Colombia to partner with Banco Colpatria and its customers," said Mark W. Begor, president and CEO of GE Money -- Americas. "Colombia is an important growth market for GE as we continue to expand our business in Latin America. Eduardo Pacheco and the Banco Colpatria team have built an exciting bank in Colombia. We look forward to partnering with them to help accelerate their growth."
Banco Colpatria, a member of the Mercantil Colpatria S.A. group, has over $2.4 billion in assets and is the second largest credit card issuer in Colombia. With 139 branches, the bank serves more than 1 million customers. The new partnership will enable the two companies to deliver enhanced consumer credit products to the growing Colombian financial services market.
"This partnership will enable Banco Colpatria to expand its product offerings and to further accelerate the bank's strong growth in the Colombian market," said Eduardo Pacheco, chairman of the board of Banco Colpatria. "This is part of the vision that we share with our new partner. GE Money is the perfect partner to help us broaden our business in Colombia."
"The Colombian financial services market is strong and Banco Colpatria is a proven leader in this market," said Edmundo Vallejo, president and CEO, GE Money - Latin America. "We're very excited to begin partnering with the Banco Colpatria management team."
GE Money - Latin America began operations in 2000, offering consumer loans and private label credit cards. The business now operates in Mexico, Argentina and Brazil, as well as in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama through a joint venture with BAC-Credomatic Holding Co. Ltd. (BAC). With approximately $7 billion in assets, GE Money -- Latin America offers a wide range of financial products including mortgages, auto loans, credit cards, insurance products and personal loans in more than 430 branches and locations.
About Red Multibanca Colpatria S.A
Red Multibanca Colpatria S.A. is a Colombian bank with business in 20 cities. It belongs to Mercantil Colpatria S.A. and has assets of over $2.4 billion, net equity of $224 million, 139 branches and 375 ATMs. Colpatria is a credit institution with a diversified portfolio, serving consumer and corporate clients with a range of financial products in local and foreign currencies. The bank is the second largest credit card issuer, including private label and co-brand credit cards. The bank also offers savings accounts and term deposits.
About GE Money
With more than $190 billion in assets, GE Money, a unit of General Electric Company (NYSE:GE), is a leading provider of credit services to consumers, retailers and auto dealers in 54 countries around the world. GE Money, based in Stamford, Conn. (USA), offers a range of financial products, including private label credit cards, personal loans, bank cards, auto loans and leases, mortgages, corporate travel and purchasing cards, debt consolidation and home equity loans, and credit insurance. More information can be found at www.gemoney.com.
GE (NYSE: GE) is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.
Contacts
GE Money
Mike Ettlemyer, 203-918-4908
[email protected]
or
Red Multibanca Colpatria
Mario Alejandro Nieto
Teléfono: 571 3386300 Ext. 3569
[email protected]
or
Gravitas Communications
Claudia Ascencio
Teléfono: 571 3 12 17 44
[email protected]
Cristy Williams
[email protected]
678.518.2596