GE Selling Plastics Unit To Saudis |
| Forbes - May 18, 2007 |
General Electric is set to sell its plastics division to Saudi Basic Industries, Saudi Arabia's largest industrial firm, an official source told Forbes.com on Friday. GE Plastics had originally been expected to sell for around $10 billion, but reports say the unit could fetch as much as $11 billion. A source close to the situation would not confirm the transaction's value but said the deal would be announced on Monday.
General Electric's plastics unit, which grossed $6.6 billion in revenue in 2006, has been up for sale since January, as part of the company's strategy to focus on high-growth areas such as energy, oil and gas equipment, as well as health care technology.
The division has struggled amid inflation in natural gas and raw materials like benzene, and profits at the unit fell about 22%, to $674 million last year, from $867 million in 2005.
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- Posted: 2007-05-18 10:35:16
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