GE Plastics deal badly timed says Sabic
Sabic’s purchase of GE Plastics wasn’t well timed, according to the firm’s vice-chairman and ceo Mohamed Al-Mady. But he expressed hope that the deal “would benefit our strategy” in the future, reports Saudi newspaper Al-Riyadh.
By Anthony Clark
Posted 31 March 2009
Sabic forked out $11.6bn in 2007 for the plastics company, the result of a frenzied bidding process between rival suitors.
At the time of the deal Jeff Immelt, GE’s ceo, said the sale was “the right move at the right time” for GE shareholders. “This transaction will transform the plastics industry by combining Sabic’s low-cost materials position and global reach with GE Plastics’ strong marketing and technology capabilities.”
Al-Mady added: “This business is complementary to our existing business without any overlaps.”
But the worsening economic climate has changed the outlook. "So much depended on the banking situation,” said Al-Mady this week, “[but] we are confident about the future of the industry.”
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