Antitrust Law Daily Wrap Up, ANTITRUST NEWS: GE Acquisition of Lufkin Granted Early Termination of HSR Waiting Period, (May 3, 2013)
Organizations Mentioned:Bracewell & Giuliani, LLP | General Electric | General Electric Co. | Lufkin Industries Inc. | Lufkin Industries, Inc. | Weil Gotshal & Manges, LLP
By Jeffrey May, J.D.
General Electric Company's proposed $3.3 billion acquisition of Lufkin Industries Inc., a supplier to the oil and gas industry, has been cleared by the federal antitrust agencies. Early termination of the Hart-Scott-Rodino Act waiting period was granted yesterday.
GE announced the proposed transaction on April 8. Lufkin is a leading provider of artificial lift technologies for the oil and gas industry and a manufacturer of industrial gears. According to the GE announcement, GE's Oil & Gas is its fastest-growing business with $11 billion in acquisitions since 2007.
Not all of these transactions have avoided antitrust hurdles. In 2011, GE was required to modify its proposed acquisition of Converteam Group SAS. A U.S. consent decree (2011-2 Trade Cases ¶77,697) resolved Department of Justice Antitrust Division concerns that the transaction, as originally proposed, would have substantially lessened competition in the development, manufacture, and sale of low-speed synchronous electric motors (LSSMs) used in the North American oil and gas industry. GE agreed to divest Converteam’s Electric Machinery Holding Company. The companies had bid against each other on LSSM projects.
Weil, Gotshal & Manges LLP provided legal counsel to GE. Bracewell & Giuliani provided legal counsel to Lufkin.
Companies: General Electric Co.; Lufkin Industries Inc.
News: Antitrust