DaimlerChrysler Sells Part of Portfolio to GE

DaimlerChrysler is selling part of its commercial financing portfolio in the United States to a unit of General Electric Co. for $1.2 billion.

The deal will give GE Capital the commercial real estate and asset-based lending portfolio of Norwalk, Conn.-based DaimlerChrysler Capital Services.

GE Capital is the Stamford, Conn.-based financial services arm of General Electric.

The sale is part of a wider DaimlerChrysler strategy to raise money and focus on its core automotive business. DaimlerChrysler Capital Services’ portfolio is worth around $114 billion. It is responsible for commercial financing within DaimlerChrysler Services and specializes in big-ticket assets like aircraft, commercial real estate and ships.

Shares of GE stock were down 10 cents to close at $37.55 on the New York Stock Exchange. DaimlerChrysler shares were down 8 cents to $40.87, also on the NYSE.