GE to Buy Oil & Gas Giant Lufkin for $3.38 Billion

Reuters ^ | Monday, 8 Apr 2013 | 8:45 AM ET | Reuters

[haffast]

General Electric agreed to buy oilfield services provider Lufkin Industries to expand its profitable oil and gas business.

GE, the world's biggest maker of jet engines and electric turbines, has expanded in the energy industry with a series of acquisitions of companies that make equipment used in oil and gas production, while divesting assets in finance and media industries.

The company has spent about $11 billion in acquisitions since 2007 to boost its presence in the oil and gas business, which is the conglomerate's fastest-growing and which contributes about 10 percent of its total revenue.

Lufkin will broaden GE's artificial lift capabilities beyond electric submersible pumps.

snip

Simmons & Co. advised Lufkin, while Goldman Sachs and Deutsche Bank advised GE.

[haffast]

Politcal Affiliation

"In the 1950's GE sponsored Ronald Reagan's TV career and launched him on the lecture circuit as a crusader against big government, which is consistent with conservative ideology. Although it can be argued that GE traditionally supported Republicanism, GE's record with designing social programs, supporting civil rights organizations, and funding minority education programs, suggests willingness to support philanthropic programs usually associated with liberal Democrats.[93]"
http://en.wikipedia.org/wiki/General_Electric#Political_Affiliation

http://www.ge.com/

[Sacajaweau]

http://www.chicagotribune.com/business/breaking/chi-ge-to-expand-oil-gas-operation-with-33b-de-001,0,7445600.photo

[T-Bird45]

GE has recently announced plans to build an Oil & Gas Research Center in Oklahoma with an investment of $110 million with 125 jobs created:

http://www.ok.gov/triton/modules/newsroom/newsroom_article.php?id=223&article_id=11451