General Electric to acquire Smiths Aerospace

World’s biggest jet-engine maker General Electric has said that they are now acquiring the Smiths Group Plc’s aerospace business for $4.8 billion.

This comes at a time when there is massive demand for commercial aircrafts. The announcement of this deal helped Smiths shares gain 17% in the stock markets.

This acquisition would now help GE expand the services and products for their aviation customers. They would now be able to offer flight management systems, power management and airborne computing systems.

Smiths have said that they would be returning back 2.1 billion pounds from this deal to their stock holders.

This deal comes as a relief to the US based company which failed in its $45 billion bid for Honeywell International Inc. in 2001. The European Union had rejected their bid for the company.

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