TORONTO _ Element Financial Corp (TSX:EFN) says it has reached an agreement to buy GE Capital's remaining vehicle fleet management operations in the U.S., Mexico, Australia and New Zealand for $8.6 billion in cash.
GE Capital Fleet Services provides commercial car and truck financing and fleet-management services.
Element Financial, based in Toronto, said the acquisition includes staff, offices, agreements, intellectual property and other assets required to operate the businesses in each jurisdiction.
Element had already bought the Canadian operations of GE Capital's North American fleet management business in June 2013.
In a related transaction, GE has also signed a memorandum of understanding to sell its European fleet operations to Paris-based Arval, a wholly-owned subsidiary of BNP Paribas and Element's founding partner in the Element-Arval Global Alliance.
``Adding these very high quality businesses to our existing fleet operations firmly establishes Element as a leader in the North American fleet management industry,'' said Element CEO Steven Hudson.
GE recently announced it would sell most of GE Capital over the next two years for about $26.5 billion. The U.S. and Mexico deal is expected to close in the third quarter, while the Australia and New Zealand transaction is targeted to close in the fourth quarter.
_ with files from The Associated Press