Saudi chemical giant to buy GE Plastics for 11.6 bln dlrs

[Loki77]

"The transaction marks one of the largest acquisitions of a US business by a Middle East company."
Source (http://www.france24.com/france24Public/en/administration/afp-news.html?id=070521134856.km5lqej8&cat=null)

[Ordie]

Well at least the Saudis have access to cheap petro.
The key ingredient in plastic.

[Flagg]

I'm not suprised.....

It's probably a shrewd move by the Saudis...to vertically integrate the plastics manufacturing with their integrated petroleum industry.

They'll probably be the global lowest cost provider and be able to monopolize the industry with their scale and low cost petroleum.

I'd be interested to see what valuation Jeff Immelt at GE put on the biz.

My GUESS is that Immelt sees the writing on the wall and will shift the money towards environmentally friendly power generation(the NEW eco-friendly GE, just like GE in the 1970's all over again), or infrastructure purchase/financing.