GE to buy Italian Avio unit for $4.3bn
Milan, December 22, 2012
US conglomerate General Electric has agreed to buy the aviation business of Italy's Avio for $4.3 billion, in a sign of confidence about the country's underlying strength despite its deep recession.
The deal comes as Europe's fourth-biggest economy labours to become more competitive under a reform agenda set by technocrat Prime Minister Mario Monti, who stepped down yesterday before general elections seen in February.
"We are convinced that Italy will exit the crisis," Nani Beccalli, president and chief executive of GE Europe, said yesterday.
"There are undoubtedly hurdles linked to red tape. But the strategic value of the deal is so big (it would offset other issues)," Beccalli said.
GE agreed to buy Avio from private equity fund Cinven and Italian state-controlled defence group Finmeccanica.
The move frustrated the aspirations of France's Safran and Italy's state-backed Strategic Fund, which had been trying over the last few months to take over Avio.
GE, whose businesses range from infrastructure technology to financial services, said Avio would boost its global supply chain capabilities as its engine production rates rise to meet growing customer demand.
Avio, which makes components for the GE Dreamliner engine used by Boeing, ranks among Italy's industrial jewels and is one of the most technologically advanced companies in its field.
The move could be a sign that GE in coming years might be ready to consider larger acquisitions.-Reuters
More INTERNATIONAL NEWS Stories
- Obama orders sanctions over Russian moves
- Crimea parliament votes to join Russia
- Arab League to be revamped
- 'Upskirting' is legal: Massachusetts court
- Singapore probes 'unnatural' death of bitcoin trader
- Onus on world powers for Syria war crimes: UN
- US, Russia set for talks on Ukraine crisis
- Brent oil drops below $109
- Services outshine manufacturing, pushing up jobs
- Bitcoin bank shut down after hacker attack
- India to kick off world's biggest poll on April 7
- China signals focus on reforms
- Hundreds ready for bitcoin exchange class action
- Space taxi, Jupiter mission in Obama budget
- Putin: Use of force last resort in Ukraine
- Powers to boost Lebanese military, economy
- Egypt bans Hamas activities in Egypt
- Putin ends army exercise, markets rally
- Russia has violated international law: Obama
- Russian markets hit as Putin tightens grip on Crimea
- Iran nuclear deal 'being implemented as planned'
- Global factory growth stumbles as demand falters
- Obama warns of 'fallout' for Israel if peace effort fails
- Ukraine mobilises after Putin's 'declaration of war'
- Oil jumps $2 over Ukraine tension
- US threatens to isolate Russia for Ukraine aggression
- Ukraine mobilises for war, calls up reserves
- Berkshire net profit surges 31pc
- China blames militants for deadly station attack
- Beginning of war? Putin ready to invade Ukraine