GENERAL Electric is buying oilfield pump maker Lufkin Industries for $2.98bn (£1.95bn), sharply increasing its presence in the fast-growing market to extract oil and natural gas from shale rock.
Lufkin’s pumps, also known as artificial lift products, are commonly seen seesawing back and forth on top of energy wells to pull oil and natural gas to the surface.
The deal values Lufkin at $88.50 per share, a premium of more than 38 per cent to the stock’s Friday close.
Expected to close by June, this is GE’s first major acquisition since it sold its remaining stake in NBC Universal two months ago and is part of CEO Jeff Immelt’s plan to focus the company on energy and other high-growth areas.
City A.M. Reporter