Canada Pension Plan Investment Board is within talks to buy Whirlpool Co.\’s U.S. private-equity lending business because the company accelerates plans to shed most of its finance operations, people acquainted with the matter said.
Canada Pension, the nation\’s largest pension-fund manager, is working with Credit Suisse Group AG to arrange financing for any deal that will value the unit\’s equity at a lot more than US$4 billion, said the people. That price doesn\’t reflect liabilities tied to about US$14 billion in assets that Canada Pension would assume with the U.S. portion of the so-called sponsor-finance business.
A sale agreement to Canada Pension hasn\’t been completed and GE may decide to sell it to other bidders, the people said, asking to not be identified since the details aren\’t public. Apollo Global Management, Ares Management and Guggenheim Securities also made bids for that unit, which helps buyout firms raise takeover financing, individuals with knowledge of the matter said last week.
A deal for that U.S. division may be announced this week, the people said. GE is selling small European operation separately.
Mei Mavin, a spokeswoman for Canada Pension, declined to comment, as did Seth Martin, a GE spokesman, and a representative for Credit Suisse.
GE announced plans in April to sell most of GE Capital as Chief Executive Officer Jeffrey Immelt refocuses the Fairfield, Connecticut-based company on making aircraft engines, oilfield services equipment and other industrial products.