General Electric Co has canceled plans to sell its railcar leasing business that could have fetched about $3 billion for the largest U.S. conglomerate, people familiar with the matter said on Tuesday.

It is at least the second time in the last three years that GE tried to sell the business and failed, indicating that financing a large leasing business remains challenging despite the improved credit conditions.

GE had hired Morgan Stanley earlier this year to find a buyer for the railcar leasing unit, as part of its continuing effort to trim its GE Capital unit.

GE officials did not immediately respond to a request for comment. Morgan Stanley declined to comment.

(Reporting by Soyoung Kim and Paritosh Bansal)

General electric Sale