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MUFG Union Bank to Acquire Supply Chain Finance Platform from GE Capital

January 17, 2019, 07:56 AM
Filed Under: Supply Chain Finance

MUFG Americas Holdings Corporation (MUAH) and GE Capital 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 (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."

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