- Vice Chairman Rice sees buying opportunities in oil and gas
- Acquisitions will be ‘bolt-ons’ that fit into GE’s business
General Electric Co. will be looking at smaller acquisitions over the next few years after completing an 8.5-billion-euro ($9.5 billion) acquisition of Alstom SA’s energy units last year.
“There will be buying opportunities,” John Rice, a vice chairman at GE, said in a Bloomberg Television interview at the Morgan Stanley China Summit in Beijing Tuesday. “The kind of M&A that we do over the next few years will be smaller than what we’ve done recently.”
GE is expanding internationally, with more than half of sales coming from outside the U.S. last year. The Alstom acquisition expanded the company’s grip on servicing and maintaining gas turbines, while adding joint ventures in renewable energy and electrical transmission businesses. The company is looking at companies in the oil and gas sector, Rice said.
“We think that at the low point of the cycle, which we believe we are in now, there will be buying opportunities,” said Rice. Acquisitions “will be bolt-ons. They will be adjacencies that we can fit into our larger business and create more value faster,” he said.
The company separately agreed to participate in as much as $3 billion of investments in Saudi Arabia as the desert kingdom seeks to diversify its economy away from oil, it said in a statement Monday.