General Electric Co.’s finance agreed to buy MetLife, an insurance company in a deal that matches the life insurer’s desire to get out from under federal regulation with GE’s pursuit of a more liable funding source. This deal will influence GE Capital of $7.5 billion in efforts to acquiring MetLife and its online banking platform. GE will benefit from this by being able to attract more individual buyers and rely less on financial markets for funds. At 4 p.m. today, the New York Stock exchange reported a 22% fall for GE and a 0.3% increase for MetLife. GE paid less than $100 million for the MetLife operation, and from the deal it boost GE Capital a base of $23 billion by about a third and help support its commercial lending business.
What is the next step for GE? GE is trying to expand MetLife by creating an online banking system similar to Discover Financial Service’s Inc. and American Express Co. They want to expand their internet efforts in respond to increasing more accounts. GE Capital is also looking to rebrand the site with its name after the deal closes and take over marketing and customer support functions from MetLife.