ABB to Sell Finance Business to GE

ABB Ltd., Europe’s largest industrial engineering group, said it will sell most of its leasing and financing business to U.S. rival General Electric Co. for $2.3 billion in cash, to reduce its mounting debt load.

The deal helps the Swiss-Swedish industrial group cut its $5.2-billion debt to a more manageable $2.9 billion.

For GE, this marks the first major acquisition since splitting its profit-driving finance arm into four parts in July.

The conglomerate touted the deal for broadening the scope of its European finance operations and specifically expanding its financing relationship with Xerox Corp. and its operations in Italy.

GE shares closed up 24 cents at $28.70 on the NYSE.