General Electric Co. (NYSE:GE) and Mubadala Development Co. inked a deal for a
commercial finance joint venture and nominated Ron Herman, who worked on private equity and mergers and acquisitions at GE Capital, to lead it. Most recently, the 25-year GE vet was CEO of GE Equity.
"When it is fully operational our commercial finance joint venture will be a powerful player in the global financing sector and will generate sustainable financial returns for both Mubadala and GE," said Mubadala CEO Khaldoon Khalifa al-Mubarak.
GE chairman and CEO Jeff Immelt said, "Having grown its Middle East-based revenues more than 60% in the past two years, GE clearly shares Mubadala's view of high-growth opportunities in the region."
When GE's venture with the Abu Dhabi sovereign wealth fund was
announced in July, the two offered few details, but with this announcement say they've made significant progress on key aspects of the broader strategic partnership. In addition to the finance JV, in which GE and Mubadala will invest $4 billion apiece, Mubadala wants to become a top 10 shareholder in Fairfield, Conn., GE and now owns about .62% of the conglomerate.
The firms are also creating a cleantech center in Masdar City and a corporate learning center to develop the skills of business executives and leaders across the Middle East, Africa and near Asia region. Jeff Barnes, a 25-year GE veteran, was named chief learning officer for the learning center.
Mubadala has been busy forming partnerships. It recently
signed an memorandum of understanding with a French company to invest in technology, health sciences and biotechnology, and renewable energy companies. And last week, a newspaper reported that Mubadala was investing $1.8 billion in a
property development project in Malaysia. -
Baz Hiralal(Pictured from left to right: Al-Mubarak, Herman, Barnes, Immelt) See the announcementGo to the story
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