General Electric Co. (NYSE: GE) has reportedly agreed with the acquisition of Metem Corporation. Metem is a solutions provider for cooling hole technologies that are utilized in turbine engine manufacturing. It is anticipated that the sale will be completed by the first quarter of the following year. Until the acquisition was completed, the two companies will run separately. The financial details of this deal were not provided by GE.
The technologies of Metem enable engines to work in a more efficient manner, as well as allow for a boost in functioning time. In addition, it is also more environmentally friendly and can reduce costs. The cooling process is very important as turbine engines experience considerably high temperatures as they operate.
As GE acquires Metem Corporation, it hopes to minimize costs and become more efficient when it comes to supply. Furthermore, it intends to scale up the operations of Metem. For the past 40 years, the two companies have been partners and General Electric is the biggest customer of Metem.
According to legislators of Connecticut, it seems like New York will most probably become the location of the new headquarters of GE. State Senator Toni Boucher said that there is approximately a 90 percent chance that the company will leave its home state Fairfield, Connecticut because of increases in tax rates, the long-term debt commitments of the state, as well as the unwillingness of the state’s lawmakers to compromise on taxes. During the month of June, when a tax rate hike was implemented, GE has established a special committee which will look at the various options for relocation.
The company, together with other organizations, raised their complaints to policymakers about this increase in taxes. Because of this, the state government has lowered taxes by about $350 million earlier this December. Yet, this tax reduction seems to have not been sufficient to appease the industrial company.
New York is one of the top choices of GE because of its proximity to the present headquarters of the company. Due to its relative closeness, employees will not be forced to relocate and can maintain their present residence. The industrial giant already maintains a presence in New York and even has a research center located in Schenectady, New York. In addition, the headquarters of General Electric was originally located in the city.
Another possible option for the relocation of the headquarters is Boston because of its investment in technological advancement. Moreover, Boston has numerous world-class educational institutions, which may provide exceptional workforce if it does relocate there.
Some legislators are still hoping that the industrial firm will stay within Connecticut, and look at the fact that the announcement regarding the headquarters was delayed from December to January. According to these legislators, they have already made changes in the tax structure and the tax benefits provided to General Electric under the tax plan.
As of the moment, GE has only released a statement indicating that it is still considering its various options and will announce its final choice publicly.