The terms of the transaction offer Wellstream shareholders 780 pence in cash per Wellstream share and a special dividend of 6 pence in cash per share, and the transaction is expected to complete in the first quarter of 2011.
GE said that the proposed acquisition is part of its growth strategy to invest in its high-technology industrial businesses, enhance product competitiveness and expand its presence in fast-growing emerging markets.
It also aligns with the company’s plans to capitalize on complementary and financially attractive acquisitions and partnership opportunities.
According to GE, the proposed acquisition will broaden its presence and continued investment in Brazil, where extensive pre-salt oil field discoveries have opened up further opportunities for subsea exploration and production.
Wellstream is a manufacturer of flexible pipeline products, systems and solutions for oil and gas transportation in the subsea production industry.
