Safran to buy 81pc stake in GE Security unit

CALIFORNIA: French aerospace and defense manufacturer Safran Group has agreed to buy an 81 per cent stake in GE Security Inc.'s homeland protection business for $580 million.

Under the deal, GE Security's corporate parent, General Electric Co., will retain a 19 per cent stake in the business, which will become part of the defense security division of Safran's Sagem Securite, GE said Friday.

The combined company will focus on identification and detection globally.

GE and Safran have been working together for more than 35 years and are expanding their relationship, GE said.

Shares of GE rose 18 cents, or 1.5 per cent, to $12.06 in morning trading Friday.