GE Completes Sale of Plastics Business to SABIC
Friday August 31, 9:28 am ET
FAIRFIELD, Conn.--(BUSINESS WIRE)--General Electric Company announced today it has completed the sale of its Plastics business to Saudi Basic Industries Corporation (SABIC), a globally respected petrochemicals manufacturer, in a deal valued at $11.6 billion in cash plus assumption of liabilities.
As previously announced, GE will use the proceeds from this sale to complete its current $27 billion stock buyback program, with $12 billion of the $14 billion planned for 2007 coming in the second half of this year. The gains from this sale will be used for restructuring that will strengthen the company for future growth. This sale is part of GE's strategy of focusing on higher-growth, higher-return technology businesses.
The former GE business is a $6.6 billion global supplier of plastic resins widely used in automotive, healthcare, consumer electronics, transportation, building and construction, telecommunications, and optical media. It is headquartered in Pittsfield, MA. and employs 10,300 people in 60 locations worldwide.
GE is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide.
Source: General Electric Company
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