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Tuesday, March 29, 2011

General Electric (GE) in $3.2 Billion Deal for Converteam

French firm Converteam, a maker of automation systems used in the oil and gas sector, has had a bid of $3.2 billion from General Electric (NYSE:GE) to take over the company.

John Krenicki, a GE vice chairman head and of the Energy Infrastructure unit, said, "This acquisition pretty much touches every aspect of our energy portfolio."

Not only does the electric motors made by Coverteam bring a larger presence in the oil and gas sector for General Electric, but expands it possibilities in the mining and metal sectors as well, which are growing fast on increasing demand.

General Electric, which has had its revenue driven by its energy division, will take a break from acquisitions in the sector once the deal for Converteam closes, which is expected to be in the third quarter.

Converteam generated about $1.5 billion in revenue in 2010.

General Electric was trading at $19.73, falling $0.02, or 0.13 percent, as of 11:56 AM EDT.

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