GE Power is going to be sold in the next couple of months. flannery believes that unloading GE Power will boost the stock price significantly.
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The Export Control barrier isn't a high one to overcome. GE already got their joint venture partner in China licensed to apply the coatings in China, as they have been doing for years. And considering that Siemens has been doing single crystal turbine blade production with their partners in China for a few years now, it seems like no real stretch to get GE Power's Chinese buyers licensed for the technology (maybe the buyers make that a condition of the deal). About the only part of the business that wouldn't be able to go over to foreign ownership easily would be GE Nuclear, but I'm not sure who would be crazy enough to buy that business anyway.
This is fake news
GE Power has manufacturing operations at Harbin Turbine Works, Don Fang, and Shen Zhang where they thought costs would be cheaper but never really panned out. They spent a fortune setting up operations and by the time all that equipment, and shipping costs all across the ocean was factored in, GE cost structure was much higher than just leaving it where it was in one place with engineering, manufacturing, and service together in one place. Now they have bloated beauracracy spread out all over where GE Power cant make money because their over all costs are too high.
Phony Six Sigma cost savings to get bonuses has destroyed GE cost structure from when they operated out of just a few places vs Atlanta, Schenectady, Greenville, Chine, India, and all the Alstom facilities in UK, Germany, Switzerland, Poland, Rumania, Hungary and a few other places.
GE Power has gone from 32,000 employees to 65,000 employees where they are making less than 1/3 of then turbines they used to make from just Schenectady and Greenville. GE Power is a bloated mess that can't make money or cash flow due to a bloated cost structure of non vertically integrated operations spread all over, with little synergy or cohesiveness.
GE Power is a real mess now because of bad management that did this and ruined the business.
Sorry, typo in the original post: There are a number of Export Controlled technologies that can't be sold to a foreign owner such as turbine materials and coatings.
I could see GE selling the Steam Power business to the Chinese but not all of Power. There are a number of Export Controlled technologies that can be sold to a foreign owner such as turbine materials and coatings. Fake news here.
Is that why John was wearing the Make GE Great Again hat on his weekly employee video?
Not fake news. DumJanki is leading the charge with a bunch of moron execs. He has great history of screwing the company and employees. Did nothing as CEO of Energy Connections, Pushed through fast sales of Capital to hit metrics and is now in charge of all the divestiture. The only ones who will gain will be his cronies.
Don't count on it. If the establishment can run President Trump out of office, then foreign acquisitions will be back to business as usual overnight. And they're working overtime to get rid of him.
You have to get through CFIUS first. All acquisitions from China are dead.
Cash flow as well as market shift issues along with changes in regulatory requirements for reporting financials as well as the SEC Investigation are so serious right now that even if something like this is not a final done deal they are exploring lots of options.
I for one will not be surprised for anything from sales of businesses traditionally thought of as safe/ never for sale businesses to spinoffs like BHGE or even smaller sales of product lines.
It is public knowledge that they need to sell $20B in businesses at a minimum for urgent cash flow needs and if businesses they want to sell don’t have buyers and the cash/ income constraints are big enough we could see something unexpected and shocking that 5 years ago might never ever have been considered.
FAKE NEWS.
Undisclosed? No, rumor says it's Harbin Electric. Speculation is that a group of Chinese investors will finance it, at least in part. They think it's an easier way to buy a large chunk of the power generation market and undercut Siemens and the other also-rans (exec's words, not mine).
Agreed. This is crazy.
Obvious fake news.
To the original poster: what is the purpose of posting something like this? What exactly do you get out of it? Do you not have anything better to do?