GE’s industrial shift also brings benefits like the GE Store. “It means that every business in GE can share and access the same technology, markets, structure and intellect,” Immelt writes. “The value of the GE Store is captured by faster growth and higher margins; it makes the totality of GE more competitive than the parts.”
The GE Store allows the company to take FAA-certified alternators from its jet engines and use them to build better oil pumps. It can also use medical imaging technology to inspect subsea pipelines. “No other company has the ability to transfer intellect and technology as GE can through the Store,” Immelt writes.
General Electric Co. and Canada’s second-largest pension fund agreed to buy a 9,300-kilometer (5,800-mile) U.S. natural gas pipeline system from Morgan Stanley for an undisclosed price.GE Financial Services and Caisse de Depot et placement du Quebec will buy 111-year-old Southern Star Central, which operates the pipeline system that stretches across eight U.S. states and mainly serves Kansas and Missouri, the pension fund said in a statement Friday.
Gas production in the U.S., especially in the middle of the continent, has surged as advanced extraction technologies allow producers to access hydrocarbons trapped in shale rock formations.
“For la Caisse, this is a high-quality asset that is strategically well-located,” Macky Tall, senior vice president of infrastructure at the Montreal-based pension fund, said in the statement.
Pictured above, GE CEO Jeffrey Immelt is taking President Barack Obama on a tour of giant building 273 in the General Electric’s “Main Plant” in Schenectady, New York. This is the image Immelt wants everyone to picture his company as.
General Electric Co will shed most of its finance unit and return as much as $90 billion to shareholders as it becomes a “simpler” industrial business instead of an unwieldy hybrid of banking and manufacturing.
The company on Friday outlined a restructuring plan that includes buying back up to $50 billion of its shares, selling about $30 billion in real estate assets over the next two years and divesting more GE Capital operations. GE stock jumped 8.5 percent.