Scottish bank to sell its French unit to GE Capital
State-controlled lender Royal Bank of Scotland said on Tuesday that it will sell its French factoring division to GE Capital, the financial services wing of US giant General Electric.
"The Royal Bank of Scotland Group plc has agreed the sale of RBS Factor SA to GE Capital," the bank said in a statement.
Factoring is the process whereby money is advanced to businesses, as a proportion of revenue from invoices issued. The debt is reassigned to the factoring company, which enables them to collect it.
RBS, which had sold already its German factoring division to GE Capital in March, did not disclose how much will be paid.
Both deals are subject to regulatory approval and expected to complete by the third quarter of 2010.