GE is selling its water and process technologies business for €3.2bn (US$3.38bn), as it advances towards the planned merger of its oil division with Baker Hughes.
The sale to French utility Suez and Canadian instructional fund manager CDPQ comes four months after the US conglomerate announced it would sell the business, which produces chemicals and equipment for water treatment.
At the time, GE said the decision to sell the business was “crystallised” by its overlap with Baker Hughes’ chemicals interests. GE has said it will use the proceeds of the sale to help fund the restructure of its business. The merger with Baker Hughes, which aims to create a world-scale oilfield technology provider, faces scrutiny from competition authorities.
In a statement announcing the deal, Suez said the purchase of GE’s water business will help improve its international footprint, most notably in the US and emerging markets.
Suez will own 70% of the business with CDPQ holding the remainder. The deal is expected to be finalised by mid-2017.
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