General Electric Co is buying oilfield pump maker Lufkin Industries Inc for $2.98 billion, sharply increasing its presence in the fast-growing market to extract oil and natural gas from shale rock, the conglomerate said on Monday.Lufkin's pumps, also known as artificial lift products, are commonly seen seesawing back and forth on top of energy wells to pull oil and natural gas to the surface.The deal values Lufkin at $88.50 per share, a premium of more than 38 percent to the stock's Friday close. Lufkin shares rose 37.9 percent to $88.16 in morning trading, while GE dipped 0.2 percent to $22.88.The Lufkin deal, which the parties expect to close by June, is GE's first major acquisition since the conglomerate sold its remaining stake in NBC Universal two months ago and is part of CEO Jeff Immelt's plan to focus the company on energy and other high-growth areas.
Lufkin Industries, Inc. is a global supplier of artificial lift products, technology, services and solutions, including automated control equipment and analytical products for artificial lift equipment, to the oil and gas industry. Shares of LUFK traded higher by 37.65% or $24.07/share to $88.00. In the past year, the shares have traded as low as $45.11 and as high as $80.04. On average, 508110 shares of LUFK exchange hands on a given day and today's volume is recorded at 7297520.
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