Smiths, GE call off joint venture
Smiths Group PLC and General Electric Co. will not proceed with plans announced earlier this year to form the Smiths GE Detection joint venture saying the interests of both businesses are best served by their remaining independent.
By Agencies |
LONDON: British aerospace group Smiths Group PLC and General Electric Co. said on Wednesday it will not proceed with plans announced earlier this year to form the Smiths GE Detection joint venture.
The companies said ``they now believe the interests of both businesses are best served by their remaining independent.''
Their March 21 agreement contained conditions precedent to the formation of the joint venture.
``After considerable endeavor by both parties, Smiths and GE were unable to agree on a strategic vision for the combined business, and as a result were not able to agree how to satisfy certain of these conditions,'' the companies said in a statement.
The companies said Smiths Detection and GE Homeland Protection offer complementary products in the airports sector, and their existing joint cooperation agreement is not affected.
Smiths shares rose 2.3 per cent to 1,021 pence ($20.37; euro14.69) on the London Stock Exchange.
The companies said ``they now believe the interests of both businesses are best served by their remaining independent.''
Their March 21 agreement contained conditions precedent to the formation of the joint venture.
``After considerable endeavor by both parties, Smiths and GE were unable to agree on a strategic vision for the combined business, and as a result were not able to agree how to satisfy certain of these conditions,'' the companies said in a statement.
The companies said Smiths Detection and GE Homeland Protection offer complementary products in the airports sector, and their existing joint cooperation agreement is not affected.
Smiths shares rose 2.3 per cent to 1,021 pence ($20.37; euro14.69) on the London Stock Exchange.
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