TORONTO CitiCapital, the global commercial leasing business of Citigroup Inc., said Friday that it had signed a deal to sell its Canadian automotive fleet management business, Associates Fleet Services, to GE Capital Fleet Services.
Under the deal, expected to close this month, the GE Capital unit will buy assets valued at about $490 million. The transaction does not include CitiCapitals fleet management business in the United States or the United Kingdom.
We remain fully committed to the fleet management industry and will continue to look for growth opportunities for this business both in the United States and abroad, said Roy Guthrie, president and chief executive officer of CitiCapital.
Citi sold the business because Canadian banking regulations prohibit banks from owning more than 25% of any company engaged in automobile leasing. Citigroup entered the fleet management business through its acquisition of Associates First Capital Corp.