The move reflects GE's strategy of shifting its financial
operations away from volatile segments such as those influenced
by U.S. consumer spending toward areas that provide higher
growth.
The companies said Mubadala "plans over time" to become one
of GE's 10-largest shareholders by acquiring shares in the open
market.
"It makes a lot of sense for us to become shareholders in
GE," said Mubadala CEO Khaldoon Al Mubarak. "We like the
company. We think that under Jeff's management this is an
institution that has done extremely well."
Al Mubarak said Mubadala currently has no stake in GE. He
declined to specify a timeframe for his company's targeted
top-10 investor position.
GE, Abu Dhabi firm in $8 billion joint venture
Conglomerate General Electric Co (NYSE:GE - News)
and Abu Dhabi investment agency Mubadala Development Co said on
Tuesday they have entered into an $8 billion joint venture with
an initial focus on providing commercial finance in the Middle
East and Africa.
