General Electric Purchases Natural Gas Company

General Electric is taking a big bet on natural gas, buying an energy equipment maker in a $3 billion deal. WNPR’s Harriet Jones reports.

Fairfield-based G.E. has been expanding its energy and infrastructure businesses of late, as the global market for both those sectors improves. The conglomerate builds turbines fueled by natural gas, and also makes money in the exploration side of the business, providing products and services for drilling companies.

Now it’s announced a deal to buy Texas-based Dresser, a privately held company which makes a whole suite of natural gas related products including engines, valves, and regulation and control systems. The discovery of massive reserves of easily accessible natural gas recently has lead to predictions of low, stable prices, meaning utilities are likely to begin relying more on the fuel into the future.

G.E. executives signaled earlier this year that the conglomerate was ready to begin considering acquisitions once again, and this purchase marks G.E.’s first major deal since before the financial crisis. Even prior to the recession, G.E. had been slimming down its portfolio by selling off its interests in whole sectors of industry.

For WNPR, I'm Harriet Jones.