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Industrials

General Electric Finally Unloads Plastics Unit

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By Douglas A. McIntyre Published
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General Electric (GE-NYSE) has confirmed that it is selling its plastics unit to Saudi Basic Industries Corporation ("SABIC").  The proceeds will be valued at $11.6 Billion in cash plus the assumption of liabilities.  The deal is of course subject to regulatory approvals and oversight committees since this is an international sale, but plastics is not exactly a GE supersecret that would have much in terms of national security issues.

The share buyback will likely be accelerated and is pegged at $6 Billion but could as much as $8 Billion.  GE will receive net after-tax proceeds from the sale of approximately $9 billion and will generate an approximate after-tax gain of $1.5 billion used to fund restructuring across GE’s businesses and the share repurchase.

This will be a good divestiture for GE in that it has one of the least focused operations to its conglomerate.

Jon C. Ogg
May 21, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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