General Electric (NYSE:GE) Acquiring Wellstream

General Electric (NYSE:GE) announced Monday it has made an offer of $1.3 billion for Wellstream, which manufactures subsea pipelines for the oil and gas industry.

In a press release, the board of Wellstream said they're going to "unanimously recommend" the deal to the shareholders of the company. The deal is for all of the company.

There are a couple of things this does for General Electric. The first and most obvious is entry into the deepwater drilling sector, which is booming, even with the perception from the Bp (NYSE:BP) Gulf crisis that it's under pressure globally.

Secondly, and probably most most important, is the exposure Wellstream has to the booming Brazil economy, where they generate much of their revenue from.

This follows the October announcement from General Electric in October where they said they're going t acquire oil-field equipment manufacturer Dresser for $3 billion.

General Electric was trading at $17.66, down $0.06, or 0.34 percent, as of 1:43 PM EST.