Proprietary Platform Offers Liquidity to Suppliers Worldwide
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New York, January 16, 2019 – MUFG Americas Holdings Corporation (MUAH) and GE Capital today announced the signing of an agreement where MUFG Union Bank, N.A., a subsidiary of MUAH, will acquire Trade Payable Services (TPS), a leading supply chain finance platform, from GE Capital. Terms of the transaction were not disclosed.
MUAH is the U.S. intermediate holding company of Mitsubishi UFJ Financial Group, Inc. (MUFG), one of the world's leading financial institutions with a global network of over 1,800 locations in more than 50 countries.
Following the close of the proposed transaction, MUFG Union Bank will assume management control of the systems and processes supporting the supply chain finance activities that GE Capital performs for GE (NYSE: GE).
"The acquisition of this world-class platform accelerates MUFG's growth trajectory in supply chain finance and broadens our presence in this business," said Kevin Cronin, MUFG's Head of North America Wholesale and Investment Banking. "TPS' scale and functionality, combined with the outstanding product and coverage capabilities of our supply chain finance team, give MUFG a distinct competitive advantage in this high-growth segment."
The TPS platform supports relationships with GE suppliers worldwide. Upon closing of the transaction, which is subject to closing conditions, regulatory approvals, and information/consultation processes where required in accordance with local laws, GE suppliers will have the opportunity to transition to a new program with MUFG over the course of 18 to 24 months.
"This is a positive development for GE Capital and for our GE industrial partners, external customers, and the suppliers we work with globally," says Alec Burger, President of GE Capital. "MUFG's position as a leading global financial institution and its strong supply chain finance capabilities make it an ideal fit for our TPS platform. We look forward to working with MUFG and are committed to ensuring a smooth transition of the platform from GE Capital."
Jon Lindenberg, Head of MUFG's Investment Banking for the Americas, said: "Global supply chain financing is undergoing significant change driven by new fintech entrants, adoption of blockchain and other market-driven disruptions. By acquiring TPS, MUFG gains its flexible, state-of-the-art functionality immediately. Over the long term, we are committed to making incremental investments in this platform that will further differentiate us from our competitors."
"Through the addition of TPS, MUFG is now able to deliver a full suite of working capital solutions that address our clients' growing needs to optimize short-capital positions," said Maureen Sullivan, MUFG's Head of Supply Chain Finance for the Americas. "We look forward to introducing MUFG's clients to our new team and platform as we extend our offering of supply chain finance capabilities."
About Mitsubishi UFJ Financial Group, Inc.'s U.S. Operations including MUFG Americas Holdings Corporation
The U.S. operations of Mitsubishi UFJ Financial Group, Inc. (MUFG), one of the world's leading financial groups, has total assets of $326.5 billion at September 30, 2018. As part of that total, MUFG Americas Holdings Corporation (MUAH), a bank holding company and intermediate holding company, has total assets of $161.0 billion at September 30, 2018. MUAH's main subsidiaries are MUFG Union Bank, N.A. and MUFG Securities Americas Inc. MUFG Union Bank, N.A. provides a wide range of financial services to consumers, small businesses, middle-market companies, and major corporations. As of September 30, 2018, MUFG Union Bank, N.A. operated 354 branches, consisting primarily of retail banking branches in the West Coast states, along with commercial branches in Texas, Illinois, New York and Georgia, as well as 22 PurePoint® Financial Centers. MUFG Securities Americas Inc. is a registered securities broker-dealer which engages in capital markets origination transactions, private placements, collateralized financings, securities borrowing and lending transactions, and domestic and foreign debt and equities securities transactions. MUAH is owned by MUFG Bank, Ltd. and Mitsubishi UFJ Financial Group, Inc. MUFG Bank, Ltd., a wholly owned subsidiary of Mitsubishi UFJ Financial Group, Inc., has offices in Argentina, Brazil, Chile, Colombia, Peru and Canada as well as branches, agencies and representative offices in the U.S. Visit https://www.unionbank.com/ or https://www.mufgamericas.com/ for more information.
Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world's leading financial groups. Headquartered in Tokyo and with over 360 years of history, MUFG has a global network with over 1,800 locations in more than 50 countries. The Group has over 150,000 employees and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group aims to "be the world's most trusted financial group" through close collaboration among our operating companies and flexibly respond to all of the financial needs of our customers, serving society, and fostering shared and sustainable growth for a better world. MUFG's shares trade on the Tokyo, Nagoya, and New York stock exchanges. For more information, visit https://www.mufg.jp/english.
About GE Capital
GE Capital, headquartered in Norwalk, CT, is the financial services division of GE, focused on serving customers and markets aligned with GE's industrial businesses. From emerging markets to developed economies, our focused team of finance experts connect capital to infrastructure and deliver innovative financial solutions that help make the world work better. For more information, please visit www.gecapital.com.