Hyundai Capital Services Inc., South Korea's top consumer finance company, said Monday it has acquired the local unit of GE Capital in an effort to cement ties with the U.S. company and carve out a new business line.
Hyundai Capital, a subsidiary of South Korea's top automaker Hyundai Motor Co., said that it purchased a 100 percent stake in GE Capital Korea Co. for around 180 billion won (US$160 million).
"The stake purchase is aimed at strengthening our relations with GE Capital and seeking a new business opportunity," Hyundai Capital said in a statement.
Hyundai Capital and GE Capital, the consumer finance arm of General Electric Co., have maintained a partnership since 2004 when they established a joint venture.
GE Capital Korea, established in 1998, specializes in medical equipment leasing and providing loans to chip equipment makers.
Hyundai Capital said it will push ahead with merging with GE Capital Korea as soon as it gets the nod from the local financial regulator.
STX Corp., a de facto holding firm of STX Group, rose 3.44 percent to 13,550 won after saying that it will refrain from seeking large-scale mergers and acquisitions and instead focus on beefing up financial strength.
The local currency closed at 1,134.40 won to the greenback, up 13 won from Friday's close, as offshore investors scooped up local stocks, dealers said.