General Electric announced plans to purchase LM Wind Power, a manufacturer and supplier of parts for the wind industry. GE will purchase LM Wind Power, based in Denmark, for $1.65 billion dollars. The purchase will allow GE to maintain control of its production line as the company increases investments in the renewable energy sector.
The approval of government and regulatory agencies will be required, but GE expects to close the transaction by the 2nd quarter of 2017.
In GE’s press release announcing the purchase, the company highlighted the general trend toward growth in renewables, writing that “approximately 50% of all new electricity capacity additions were renewable energy sources”, with wind power representing 35% of that share.
LM Wind Power, a 30-year old company, has thirteen factories in eight countries including USA, China and parts of Europe.
GE shares will open at $28.86 on October 11, 2016.