June 8, 2012
The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Isaac Pino and research analyst Catherine Baab-Muguira discuss topics from across the investing world.
In today's edition, Isaac and Cat dissect the merger and acquisition environment for big industrial companies. The opportunity to grab global market share in power generation has sparked enormous buyouts in 2012. Industrial manufacturers like Eaton and Switzerland-based ABB announced $11.8 and $3.9 billion bids, respectively, in an attempt to diversify their portfolios. However, the Dow industrials, including General Electric, United Technologies, and Caterpillar, have been relatively quiet, pursuing strategic "tack-on" acquisitions rather than blockbuster bids. Siemens, the German conglomerate, seems to be following a similar path. Watch the video below for additional insight into this dynamic market.
For GE, the recent financial crisis struck a blow, but management was able to execute savvy acquisitions during the market's dip. The company made big bets in energy, but also took steps to strengthen its balance sheet. If you're a GE investor, you need to understand how these bets could drive this company to become the world's infrastructure leader. At the same time, you need to be aware of the threats to GE's portfolio. To help, we're offering comprehensive coverage for investors in a premium report on General Electric, in which our industrials analyst breaks down GE's product portfolio. You'll find reasons to buy or sell GE, and you'll receive continuing updates as major events strike during the year. To get started, click here now.