GE reported that it will acquire Lufkin for approximatly $3 billion. This acquisition will expand GE’s oil and gas business. Shareholders of LUFK will be paid $88.50 per share in an all cash deal.
GE has been in the process of having a more focused business that provides industrial equipment and services to customers. The company sold its stake in NBCUniversal in February and has been cutting its banking division.
GE shares were mostly flat during premarket trading Monday. The stock has increased 18% in the past year. Lufkin shares were up $23.91, or 37.40% during premarket trading Monday. The stock has declined -20% in the past year.
The Bottom Line
Shares of General Electric Company (GE) have a 3.31% yield, based on Friday’s closing price of $22.93.
Shares of Lufkin Industries, Inc. (LUFK) have a 0.78% yield, based on Friday’s closing price of $63.93.