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GE to buy aviation unit
of Italy´s Avio for $4.3 billion

Reuters, by Danilo Masoni*

Original Article

Posted By:LittleHoodedMonk, 12/21/2012 3:58:17 PM

Milan - General Electric Co (GE.N) has agreed to buy the aviation business of Italy´s Avio for $4.3 billion, in a sign of confidence about the country´s underlying strength despite its deep recession. The deal comes as Europe´s fourth-biggest economy labors to become more competitive under a reform agenda set by technocrat prime minister Mario Monti, who is due to step down on Friday before general elections seen in February. (Snip) Avio, which makes components for the GE Dreamliner engine used by Boeing Co (BA.N), ranks among Italy´s industrial jewels and is one of the most technologically

Comments:
My concern, having once worked for GE, is that they are required in the agreement with Italy never to move or share any of this business with China. GE has done so with many of its similar industrial manufacturing.

      


Post Reply  

Reply 1 - Posted by: simple simon, 12/21/2012 4:09:18 PM     (No. 9078347)

GE used the money they saved by NOT PAYING TAXES to buy this outfit to AVOID more taxes next year when the Sherrif of Nottingham comes calling.

Dont think that Immelt has the inside scoop?

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Reply 2 - Posted by: john56, 12/21/2012 6:07:41 PM     (No. 9078484)

More jobs created by Boss Immelt, the Obama Jobs Czar!

Of course, they´ll be in China.

And an equal number of American jobs will be shed to keep the GE headcount unchanged.

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Reply 3 - Posted by: GrandmaP, 12/22/2012 12:07:04 AM     (No. 9078797)

When it comes to the Aviation business, Avio is a huge supplier. However, when the upper supply chain says Avio needs to deliver engine components to schedule, and they march to the beat of their own drum, what´s the big dog to do.... After all, they´re dealing with Italians. When you can´t change that culture, and you have few options, the big dog must acquire them. The march to expand the global economy mindset continues.


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