MetLife Inc. has announced that GE Capital Financial Inc. will acquire most of the depository business of MetLife Bank NA. Financial terms of the transaction, which is expected to close in the second quarter of 2012, were not disclosed.
Under the definitive agreement signed by GE Capital and MetLife Bank, GE Capital will acquire approximately $7.5 billion in MetLife Bank deposits, including certificates of deposit and money market accounts. Approximately $3 billion in custodial deposits associated with MetLife's forward mortgage business and certain other deposits are not included in the transaction, but will be transferred out of MetLife Bank over the next six months. MetLife Bank had $10.7 billion in deposits as of Sept. 30.
‘This transaction with GE Capital ensures that customers of MetLife Bank will continue to be served by a high-quality organization that already meets the financing needs of more than 100 million consumers,’ says Steven A. Kandarian, president and CEO of MetLife Inc. ‘At the same time, this agreement is a significant step toward MetLife's no longer being a bank holding company.’
Deutsche Bank Securities Inc. served as exclusive financial adviser to MetLife, while Wachtell, Lipton, Rosen & Katz served as MetLife's legal adviser.