Decision Nº M/13/016 from Competition and Consumer Protection Commission, 2013-05-22

CourtCompetition and Consumer Protection Commission (Ire)
PartiesGeneral Electric Company,Lufkin Industries, Inc.
Decision Date22 May 2013
Decision NumberM/13/016
StatusCleared (Phase 1)
Date22 May 2013
Merger Notification M/13/016 – GE / Lufkin
DETERMINATION OF MERGER NOTIFICATION M/13/016 –
GE / LUFKIN
Section 21 of the Competition Act 2002
Proposed acquisition by General Electric Company of Lufkin
Industries, Inc
Dated 22/05/2013
Introduction
1. On 3 May 2013, in accordance with Section 18(1)(a) of the
Competition Act, 2002 (“the Act”), the Competition Authority (“the
Authority”) received a notification of a proposed transa ction wh ereby
General Electric Company (“GE”) would acquire sole control of Lufkin
Industries Inc (“Lufkin”).
2. As stated by the parties, the proposed transaction would be put into
effect pursuant to an agreement between GE, its wholly-owned
subsidiary Red Acquisition Inc. (“Red Acquisition”) and Lu fkin. In
essence, Red Acquisition would be merged with an d into Lufkin and
Lufkin would become a wholly owned subsidiary of GE.
1
The Undertakings Involved7
Acquirer
3. GE is a global, diversified technology and services public company
incorporated in the United States. GE is divided into a number of
business units, each of whi ch has its own divisions. Its primary
business units include: GE Energy Ma nagement, GE Power & Water, GE
Oil & Gas, GE Healthcare, G E Aviation, GE Transportation, GE Capital
and GE Home & Business Solutions.
4. GE is active globally in the following sectors: aircraft engines,
consumer p roducts, specialty materials, power systems, industrial
systems, medical systems, plastics, broadcasting , financial services
and transportation systems.
5. Most of G E’s main business segments operate within the State. In
particular GE manufactures wind turbines and healthcare products,
carries out much of GE’s airplane leasing operations an d has its GE
Capital European headquarters within the State.
6. For the financial year ending 31 December 2012, GE had a worldwide
turnover of €114.7 billion and a turnover in the State of €[…] .
2
1
The agreement is dated 5 April 2013. Once the acquisition has been put into effect, Red
Acquisition would cease to exist as a separate entity.
2
Based on USD $147.4 billion and USD $[…] respectively, calculated using the ECB average
annual exchange rate, for the period 1 January to 31 December 2012, of €1=$1.2848.

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