Boston, MA 07/03/2014 (wallstreetpr) – Wells Fargo & Co (NYSE:WFC) recently announced the merger of two of its corporate asset-based lending units in an apparent effort by the bank to position itself well for the anticipated growth in the segment.
The bank, which is considered the fourth largest lender in the U.S., aims to erase the divide between its corporate asset-based lending operations that capture deals in the neighborhood of $35 million. As such, the company announced the combination of Business Credit and Business Finance units.
The company anticipates corporate lending business to pick up as the economy begins to show signs of strength after a slowdown.
Under One Management
The combined unit will have about 200 workers who previously worked separately. The combination of the units will also result in the merger of the underwriting, origination and portfolio teams within the units.
The combined unit will be headed by Kurt Marsden and will be called Business Finance. The new division will also become one of the nearly a dozen units in the Wells Fargo Capital Finance.
Wells Fargo & Co (NYSE:WFC) does not break out the financial data of its Capital Finance operations but reports the same under its wholesale banking division, which is run by former CFO Timothy Sloan.
Wells Fargo wholesale banking contributed 29 percent of the revenue generated by the bank in 2013.
Merger To Take Months
Although Wells Fargo & Co (NYSE:WFC) is keen on eliminating the divide in its asset-based lending operations, the company said the merger of the identified two units will take months to fully complete. However, the completion of the merger will position the company well to take advantage of the growth in the corporate loaning business as companies increase their borrowing to grow or sustain their operations.
Wells Fargo & Co (NYSE:WFC) controls 19 percent of the asset-based lending market, making it the second largest by market share only behind Bank of America Corp (NYSE:BAC), which controls 21 percent of the market.