The US-based transnational diversified business group, General Electric, is acquiring 100 per cent shareholding in Bently Nevada India Ltd, following the latter's merger with GE earlier this year.
According to sources, GE is bringing in Rs 21 crore to acquire the entire shareholding in the Indian subsidiary of Bently Nevada Corporation, which is headquartered in Mumbai. Bently holds a 99 per cent stake in the company, while the balance one per cent shareholding is with another partner.
GE Power Systems stated on January 24, 2002 that it has completed the acquisition of Bently Nevada Corp which it announced last November. The terms of the deal were, however, not disclosed.
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In India, GE's investment is being routed through General Electric International Operations Inc, according to sources. The acquisition will be completed soon, subject to requisite regulatory approvals.
Sources said General Electric has sought approval of the Foreign Investment Promotion Board (FIPB) to acquire stake in Bently Nevada India. It was, however, not known if the acquisition includes Bently Nevada India Sales and Service Pvt. Ltd, which is the marketing company for the group in India. Officials in Bently Nevada India Sales and Services said they had no idea of the deal, though they were aware of the global acquisition.
The FIPB is likely to consider the case at its next meeting, government officials said.
Bently Nevada is a 40-year-old manufacturer of machinery monitoring and diagnostics devices and is among the leaders in rotor dynamics. Its products include plant asset management systems related to vibration monitoring, machinery protection, software and engineering services. The company employs 2,100 people worldwide, and has projected sales of $235 million in 2001.
Bently Nevada's acquisition will help GE expand its product and services portfolio in the power industry. Bentley Nevada's strong technology and engineering resources will provide it with an integrated products and solutions platform for machine monitoring and diagnostics.