The sale comprises GE Energy's worldwide hydro business apart from its operations in Norway and Sweden; however, an offer by PGC to purchase these is under consideration which, after due consultation of local works councils, could result in a subsequent sale agreement.
Terms of the agreement were not disclosed. The closing of the transaction is subject to customary conditions, including the receipt of regulatory approvals, and discussions with works councils and other third parties, and is expected to occur during the first quarter of 2007.
PGC is a multinational, privately-held group with a strong focus on the hydro industry, in which it has been operating for 100 years through IMPSA.
'We are pleased to enter into this agreement with PGC and believe this is a positive development for our hydro segment customers, our employees and our shareholders,' said John Krenicki, President and CEO of GE Energy. 'The move positions PGC to provide additional value to hydro customers by combining the tremendous industry expertise of our hydro employees, as well as GE's hydro technology and assets with PGC's existing operations, through IMPSA.
'Although GE's hydro team has been delivering solid performance improvements, the business has re-evaluated the position of the hydro segment with respect to other growth opportunities. We believe the sale of our hydro operations to PGC will position them to meet hydro customer needs, while structuring the operations for continued growth and stability over the coming years, and allow GE Energy to focus on other segments of the power generation industry,' added Krenicki.
Besides having its main focus on the hydro industry, PGC maintains a presence in businesses such as wind power generation and equipment, port systems, automobile parts, control systems, environmental services and insurance. It employs more than 6000 people and operates in 27 countries. IMPSA is a global provider of integrated solutions for renewable energy generation through 160 projects in more than 40 countries. The group maintains a presence in Argentina, Brazil, Ecuador, China, India, Malaysia, the Philippines, Venezuela, Columbia, USA, Spain, South Africa and Indonesia.
GE Energy's hydro segment is headquartered in Schenectady, New York, US and employs approximately 2000 people globally.
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