General Electric (GE) Makes $300M Investment in Large Brazilian Conglomerate

General Electric (NYSE: GE) and Mr. Eike Batista, the founder of the EBX Group (“EBX”) of Brazil, announced that they have signed a strategic investment agreement. Under the terms of the agreement, GE will make a US$300 million primary investment in exchange for a 0.8% preferred equity interest in Centennial Asset Brazilian Equity LLC and other offshore holding companies (altogether, “Centennial”) of the EBX group. The proceeds will be used to further enhance EBX’s solid capital structure and also help finance Mr. Batista’s pipeline of future investment opportunities, as this is one of the fundamental pillars provided for under the agreement.

This investment is in line with a series of common objectives that GE and EBX group have been focusing on over the past years and further cements the close relationship between the two organizations. It underscores GE's efforts to bring certain industrial production to the LLX Açu Superport, while enhancing GE’s position as a strategic supplier of equipment and services for the EBX Group companies in a number of key industries such as oil and gas, power generation and mining. Moreover, EBX is pleased with GE's decision to accelerate the growth of its existing mining equipment and services business, including the recently announced acquisition of two underground mining equipment companies, Fairchild International and Industrea Limited.

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