General
Electric Company said it will buy oilfield services provider Lufkin
Industries Incorporated for about $3.3bn to expand its oil and gas
business, Reuters has reported.
The
offer values Lufkin at $88.50 per share, representing a premium of 38
per cent to the stock’s Friday close. Lufkin shares rose to $87.97 in
premarket trading.
Lufkin,
which makes artificial lift technologies and industrial equipment, has
operations in the United States, Canada, Latin America, the Middle East
and Europe.
Artificial
lift refers to the use of external means to increase the flow of
liquids such as crude oil or water from a production well.
GE
has been boosting its presence in the energy sector with purchases of
oilfield equipment maker Dresser, John Wood’s well support division and
British oil equipment company Wellstream.
Oil and gas business contributed about 10 per cent to GE’s total revenue last year.
No comments:
Post a Comment