FACTS
GEC.
The General Electric Company, or GEC, was a major UK-based industrial conglomerate involved in consumer and defence electronics, communications, and engineering. The company was a constituent of the FTSE 100 Index.In December 1999, GEC's defence arm, Marconi Electronic Systems, was amalgamated with British Aerospace to form BAE Systems. The rest of GEC continued as Marconi plc. The financial troubles that followed the in 2001 led to the restructuring in 2003 of Marconi plc into Marconi Corporation plc. By the mid-1990s, GEC was making profits of £1 billion, had cash reserves of £3 billion, and was valued at £10 billion.
Marconi Electronic Systems sale (1998–99)
Since October 1998, reports had been linking British Aerospace (BAe) with the German aerospace group DASA. GEC was even seen as a potential partner in a three-way merger with BAe and DASA.[18]
In December 1998, reports emerged that GEC was seeking a partner for MES, the value of which was greatly increased by the Tracor acquisition. Prospective partners included Thomson-CSF (by 1998 on the path to privatisation) and various American defence contractors (e.g. Lockheed Martin and TRW).[19]
GEC had already been active in pursuing consolidation in the defence business. In 1997, it made an ultimately unsuccessful bid to the French government to privatise Thomson-CSF and merge it with MES. Other Countries do not sell off their assets. They have more sense than the British.
A merger of UK companies soon became the most likely development. In mid-January 1999, GEC and British Aerospace confirmed they were holding talks. On 19 January, it was announced British Aerospace was to acquire Marconi Electronic Systems for £7.7bn ($12.75bn).[20]
Since October 1998, reports had been linking British Aerospace (BAe) with the German aerospace group DASA. GEC was even seen as a potential partner in a three-way merger with BAe and DASA.[18]
In December 1998, reports emerged that GEC was seeking a partner for MES, the value of which was greatly increased by the Tracor acquisition. Prospective partners included Thomson-CSF (by 1998 on the path to privatisation) and various American defence contractors (e.g. Lockheed Martin and TRW).[19]
GEC had already been active in pursuing consolidation in the defence business. In 1997, it made an ultimately unsuccessful bid to the French government to privatise Thomson-CSF and merge it with MES. Other Countries do not sell off their assets. They have more sense than the British.
A merger of UK companies soon became the most likely development. In mid-January 1999, GEC and British Aerospace confirmed they were holding talks. On 19 January, it was announced British Aerospace was to acquire Marconi Electronic Systems for £7.7bn ($12.75bn).[20]