General Electric (GE) disclosed June 14 that the proposed sale of GE Energy’s hydropower business to Argentina’s Pescarmona Group of Companies (PGC) has been canceled.
GE had announced in December 2006 that it agreed to sell GE Energy’s hydro business to PGC, parent of Argentina-based hydro industry supplier IMPSA. (HNN 12/20/06) Although the deal was expected to close in the first quarter of 2007, word of a snag in the agreement leaked out in recent days.
A GE Energy spokeswoman in Schenectady told HCI Publications June 14 that the merger, to be named Tynesis Hydro, would not be completed.
�GE and Tynesis will not close sale of GE’s hydro business,� a statement issued by GE Communications Manager Erika Anderson said. �The transaction previously announced in December 2006, in which Tynesis was to acquire GE Energy’s hydro business, will not close.�
The statement said each party had reserved its legal rights under the parties’ agreement. It added that GE would continue to operate the hydro business.
The definitive agreement signed with PGC had included sale of GE’s worldwide hydro business, excluding its hydro operations in Norway and Sweden. However, a PGC offer to buy those operations had been under consideration, including consultation with local works councils.
At the time of the agreement, GE Energy President John Krenicki had said the sale would allow Atlanta-based GE Energy to focus on other segments of the power generation industry, while positioning PGC for continued growth and stability. GE’s hydro operation is based in Schenectady, N.Y., and employs 2,000 people globally.
PGC Chairman Enrique Pescarmona had said the acquisition would enhance PGC’s position with IMPSA (Industrias Metalurgicas Pescarmona SA) as a global player in hydropower, with presence in the Americas, Europe, and Asia.
PGC employs more than 6,000 people in 27 countries. Besides its main focus on hydro, it has a presence in wind power, port systems, auto parts, control systems, environmental services, and insurance.