Capital One Finance Corporation, a credit card lender, is in exclusive talks to acquire General Electric's U.S. health care finance unit for about $10 billion, people familiar with the matter told Reuters.
The deal, which will enhance Capital One's existing healthcare lending operations, is also part of GE's plan to divest.
The source also told Reuters that Capital One outbid other potential buyers during the auction for the healthcare finance unit.
The source, who asked not to be named as negotiations are confidential, also cautioned that negotiations are still ongoing and the deal is not yet final.
"As a matter of practice, we do not comment on market rumors or speculation," Capital One said to Reuters. "As disclosed in our SEC filings, the company has every intention to fully deliver on our approved capital distribution plan."
Bloomberg adds that Apollo Global Management was Capital One's main competitor, as both companies made final bids for the business at the end of last month.
GE's U.S. health care finance unit, which provides mortgages and loans for nursing homes and other healthcare companies, is just one of the operations that GE is selling, according to Bloomberg.
Jeffrey Immelt, chief executive officer of GE, is looking to shed the company's financial arm.
Reuters adds that GE is targeting about $200 billion worth of capital assets to be shed as the company will be focusing more on industrial manufacturing.
GE has already announced several deals as it pushes forward to reach its target.
The company has agreed to sell $26 billion worth of real estate assets to Wells Fargo & Co, and Blackstone, according to Reuters.
Reuters also adds that GE Capital has already agreed to sell its private equity lending portfolio for $12 billion to the Canada Pension Plan Investment Board.
Furthermore, the company's vehicle fleet management arm in the U.S., Mexico, Australia, and New Zealand has already been sold to Canada's Element Financial for $6.9 billion.
