GE partners with Abu Dhabi firm for a $8 billion finance fund

 

GE and Mubadala, run by the ruling al-Nahyan family, will each contribute $4 billion in equity over three years to the fund, with the aim of reaching $40 billion in assets, the companies said in a statement Tuesday.

Mubadala separately said that it wanted to become one of the Fairfield, Connecticut-based GE’s top 10 shareholders through stock purchases in the open market.

Jeffrey Immelt, the GE chief executive, coping with a stock that has declined about 25 percent since he cut his 2008 forecast in April, told investors in May that GE may join with a sovereign wealth fund to invest in finance assets hurt by the global credit crunch. GE, the world’s biggest maker of power-plant turbines and medical imaging machines, will also build a research center in Abu Dhabi’s new Masdar City among other ties.

The partnerships build “on our long-term relationships in a high-growth region like the Middle East,” Immelt said in the statement. “We can use our unique financial and industrial capabilities to establish profitable relationships across a number of businesses and we welcome them as a long-term shareholder.”

 

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