By: dl

The Wall Street Journal reports that GE, having just dissolved its joint venture with Fanuc, is “on the [acquisition] deal war path for industrial companies,” with Rockwell Automation a likely target. The WSJ Blog entry by Paul Glader cites Steve Tusa, an industrial analyst at JP Morgan, to the effect that “Following the break up of the (GE-Fanuc] joint venture, we believe it’s a big get-big or get-out question.” Added Glader, “As GE exits some deals, it is accumulating a war chest to complete new ones.” 

“In the past year,” according to Glader, GE executives “have mentioned Rockwell as a company they would like to own. The case grows stronger as GE chief executive Jeff Immelt has spoken more and more emphatically about GE focusing on growing manufacturing and industrial businesses instead of financial businesses.

“This comes as GE has publicly said it will shrink its GE Capital division and has struck a deal with Comcast Inc. to reduce its stake in media company NBC Universal. According to Tusa, buying Rockwell helps GE replace the media earnings and to grow in the automation space, where GE is not even a top 10 player.”

blogs.wsj.com/deals/2009/12/15/is-ge-eyeing-an-853-billion-rockwell-automation-deal/?blog_id=6&post_id=18332