COMMENT: With a former GE CEO Now in the Obama Admin, Expect Many Gains for the Power/Media Giant
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Financial Times
Feb 15, 2011
General Electric’s $2.8bn (£1.74bn) acquisition of Aberdeen-based John Wood Group’s well support division has secured one of the British company’s crown jewels: its electric submersible pumps, which are in ever greater demand for squeezing more oil out of ageing fields.
- A d v e r t i s e m e n t
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The deal has also strengthened GE’s oil and gas business to the point that the group presents it as a global force with “a really terrific portfolio”.
The question is whether the price GE has paid is too high.
It is not that GE cannot afford it. The company has a market capitalisation of about $227bn and spare cash (excluding that required to back GE Capital) at the end of last year of $19bn.
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