GE, Mubadala tie up for multi-billion dollar global venture

Abu Dhabi:General Electric and Mubadala Development Company announced a framework agreement on a global partnership encompassing a broad range of initiatives including commercial finance, clean energy research and development, aviation, industry and corporate learning.

Building on an already strong relationship and a common view of high-growth opportunities in the Middle East and globally, the agreement provides for shared capital commitments to new joint ventures and investment funds.

In addition, Mubadala also plans over time to become a long-term GE shareholder. The expectation is that Mubadala will become one of GE's top ten institutional investors through the open market, as conditions allow.

"Over the next 12 months, the two companies will establish a jointly owned global commercial financial services business headquartered in Abu Dhabi with best-in-class origination, funding and risk management capabilities. The two companies will each allocate $4 billion in equity for the venture over a three-year period," the companies said in a joint statement.

The new business initially will focus exclusively on investment opportunities generated through GE Capital's existing origination and servicing capacity, with targeted assets in excess of $40 billion.

GE and Mubadala will establish a clean energy technology center located in Masdar City, the new carbon neutral, zero-waste city in Abu Dhabi.

Masdar is Mubadala's world-leading alternative energy initiative. The center will be an extension of GE's global research network and will house up to 100 technologists developing new sustainable energy, water and other environmental technologies. GE will now have five research centers around the globe.

GE also will establish an Ecomagination® center in the Masdar facility to market and showcase its ecomagination products. Ecomagination® is GE's successful business initiative that develops more energy-efficient and environmentally friendly products and services.