General Electric Co obtained antitrust approval to purchase oilfield pump manufacturer Lufkin Industries Inc. The purchase was worth US$2.98 billion and it allows GE to increase its visibility in the fast expanding market in shale oil and gas extraction.
The Federal Trade Commission works hand in hand with the Justice Department in the enforcement of antitrust law. The agency announced the approval of the purchase last Friday.
This is the first major acquisition undertaken by General Electric since it sold off its remaining shareholdings in NBC Universal a couple of years ago.
General Electric Chief Executive Officer Jeffrey Immelt discussed plans of the conglomerate to focus more on increasing market share in the energy-rich shale fields in several states, such as North Dakota and Texas.
Also known as artificial lift products, Lufkin pumps are often iinstalled at the top of energy wells and they see saw back and forth pulling the oil and natural gas to the surface.
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