General Electric set to agree bid for UK services firm Wellstream

US conglomerate General Electric (GE) is said to have agreed a £755m-plus takeover of the UK oil and gas services group Wellstream.

Wellstream previously rejected GE’s offer of 750p, which valued the UK firm at £755m, as too low.

However, the latest deal, agreed in the last few days, is reportedly higher than 750p a share but less than 800p.

Wellstream, which makes flexible pipes used by oil companies in deep water, has a manufacturing facility in Brazil. This has been a key attraction for potential buyers because the country is keen for locally produced materials to be used in extracting its billions of barrels of oil reserves.

The agreed deal, reported by the FT, is GE’s second substantial energy sector acquisition in two months.

Wellstream refused to comment.