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PHH terminates merger agreement with GE and Blackstone
(Reuters) - Mortgage and vehicle fleet company PHH Corp (PHH.N) said it terminated the $1.8 billion merger agreement with General Electric Co (GE.N) and Blackstone, after the private equity firm failed to obtain required financing for the deal.
GE and the Blackstone Group (BX.N) had agreed in March to acquire PHH for $1.8 billion. Under the terms of that transaction, GE would retain PHH's vehicle fleet company PHH Arval and then sell PHH Mortgage to Blackstone immediately after closing.
The Board will decide whether to continue to explore strategic alternatives for the company in due course, Mount Laurel, New Jersey-based company said in a statement.
Pursuant to the termination, PHH has sought a termination fee of $50 million from the Blackstone Group.
(Reporting by Sweta Singh; Editing by Dinesh Nair)
