According to a Bloomberg report, diversified industrial conglomerate General Electric Company (GE - Free Report) is anticipated to shortly announce the closure of the sale of wind turbines worth approximately $604 million to Casa dos Ventos, a privately held Brazilian wind power producer.
The purchase from General Electric is a result of the failure of Wobben Wind Power, a subsidiary of Enercon GmbH, to fulfil its contractual obligation to supply 230MW of turbines worth $364.4 million to Casa dos Ventos. Additionally, subject to General Electric guaranteeing the completion of the contract by 2015, Casa dos Ventos intends to acquire additional megawatts (MW) of wind energy from General Electric. The additional turbines worth $237.7 million will produce 150MW of energy.
Brazil is counting on wind energy to generate 9.5% of its installed capacity by 2022. If the deals materialises, the strategic move by General Electric will help its subsidiary in Brazil to operate at full capacity in 2015 and 2016. With the installation of 900 turbines by the end of 2014, the company is likely to capture 24% share of the Brazilian wind turbine market. Casa dos Ventos is expected to generate 600MW from wind turbines by the end of 2018.
General Electric is one of the most diversified technologies and financial service corporations in the world. Its segments include Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Home & Business Solutions, and GE Capital. The GE Power & Water segment produces gas, steam and aero derivative turbines; generators; combined cycle systems; and renewable energy solutions, as well as provides water treatment services and equipment.
General Electric currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth a look include ITT Corporation (ITT) and Noble Group Ltd. (NOBGY), both carrying a Zacks Rank #1 (Strong Buy), and Carlisle Companies Inc. (CSL), carrying a Zacks Rank #2 (Buy).