Conglomerates Sector Review: Case Resigns from Caterpillar, New Product and New Facility for GE
Temple-Inland, Inc. (NYSE:TIN): International Paper Company (NYSE:IP) and Temple-Inland Inc. (NYSE:TIN) announced that they have reached an agreement with the Antitrust Division of the U.S. Department of Justice with respect to International Paper’s acquisition of Temple-Inland. The DOJ has entered into a consent decree with International Paper and Temple-Inland that allows the combination to proceed. Under the terms of the consent decree filed in federal court in the District of Columbia, the combined company will undertake the post close divesture of 970,000 tons of containerboard mill capacity within four months, with the possibility of two 30-day extensions. The company agreed to divest Temple-Inland’s facilities in Ontario, California and New Johnsonville, Tennessee, and International Paper’s facility in Hueneme, California. International Paper reaffirms that it expects to achieve at least $300M of synergies within twenty-four months of closing.
The shares closed at $31.99, up $0.12, or 0.38%, on the day. Its market capitalization is $3.51 billion.
Siemens AG (NYSE:SI): A number of firms from around the world are competing for the right to build and operate a $21B rail link between Moscow and St. Petersburg before the 2018 World Cup soccer tournament, reports Bloomberg. Included are Siemens AG (NYSE:SI), Alstom SA, Bouygues SA, Finmeccanica SpA, UniCredit SpA and units of Hyundai and Samsung, according to the deputy head of OAO High-Speed Rail Lines.
The shares closed at $98.15, down $2.19, or 2.18%, on the day. Its market capitalization is $86.00 billion.
General Electric Company (NYSE:GE) Appliances announced the opening of its GeoSpring Hybrid Water Heater manufacturing facility at Appliance Park in Louisville, Ky. – the first to open there since 1957. The $38M investment in the new product and a revitalized facility is the first milestone in commitments GE has made since 2009 to invest a total of $1B, or $800 million in Louisville, and create more than 1,300 new jobs in the U.S. by 2014. The new product and other recent investments at Appliance Park has also created hundreds of highly skilled salaried jobs in fields like engineering, industrial design and manufacturing.
The shares closed at $18.88, down $0.25, or 1.33%, on the day. Its market capitalization is $199.27 billion.
Caterpillar Inc. (NYSE:CAT): Caterpillar announced that Richard Case, vice president with responsibility for the Marine & Petroleum Power Division, has elected to resign from the company to pursue other opportunities. Case’s departure from Caterpillar will be effective May 1. Caterpillar’s board of directors has appointed Tom Frake to replace Case as vice president, Marine & Petroleum Power Division. Frake’s appointment is effective April 1.
The shares closed at $111.75, down $1.08, or 0.96%, on the day. Its market capitalization is $72.26 billion.
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