BBC Home
Explore the BBC
BBC News
Launch consoleBBC NEWS CHANNEL
Last Updated: Thursday, 12 July 2007, 06:09 GMT 07:09 UK
GE abandoning $8bn medical deal
The news is a blow to GE's ambitions
General Electric (GE) has pulled out of an $8.1bn (3.98bn) deal to buy the diagnostics arm of Abbott Laboratories after failing to agree terms.

The deal, first announced in January, would have given the firm a major presence in the lucrative laboratory and bedside equipment testing sectors.

The transaction had been approved by both US and European regulators.

GE has been refocusing its business, exiting lower-growth manufacturing areas in favour of energy and health.

"GE and Abbott worked diligently to complete the transaction but were unable to reach agreement on final terms and conditions," GE said in a statement.

Health now accounts for nearly 15% of GE's profits, a share which would have increased significantly as a result of the deal.

But news that the deal had collapsed seemed to be welcomed by analysts - some of whom had questioned the cost and logic of the deal - with shares in both companies rising in response.

GE ends bid interest in Dow Jones
21 Jun 07 |  Business
GE in $11.6bn Saudi plastics sale
21 May 07 |  Business
GE knocks Exxon off top share spot
01 Apr 05 |  Business
GE buys Abbott units for $8.2bn
19 Jan 07 |  Business

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Americas Africa Europe Middle East South Asia Asia Pacific