GE's Recent Acquisitions
General Electric Co. has developed to become the most acquisitive industrial firm across the globe since its inception. The company is renowned for spending huge amounts of money on takeovers or acquisitions as part of its strategy to ensure increased growth and profitability. In essence, General Electric's acquisitions are fueled by the focus on ensuring good returns across its operations through obtaining a considerable market share and competitive advantage. Acquisitions are important strategies in the company's operations given that they are regarded as initiatives that enhance organic growth. In the past few years, General Electric has made several acquisitions including the acquisition of Dresser Inc. and Alstom.
GE's Acquisition of Dresser Inc.
General Electric completed a $3 billion takeover of Dresser Inc., which is an international energy infrastructure technology and service provider in 2011 (Reuters, 2011). This acquisition transformed the international energy portfolio of GE by expanding its energy offerings and industrial customers throughout the world. Following the acquisition, GE enhanced its focus on research and development to Dresser's tailor made solutions and provided an opportunity for workers to significantly expand their businesses.
Reasons
General Electric's acquisition of Dresser Inc. is justified by the need for growth, which is the reason for the takeover. This acquisition...
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