Buenos Aires-based tubemaker Tenaris SA announced Monday that it will sell its Hydril pressure-control business to General Electric Co. (GE) for US$1.115 billion.
Tenaris chief executive Paolo Rocca explained in a statement that the drilling-related business "is one with excellent technology, an impressive team and solid prospects, but has limited synergies with our core tubular business."
GE will incorporate the acquisition into its oil-and-gas segment to help meet the high demand for deep-sea oil and gas drilling.
Tenaris said the deal is subject to governmental and regulatory approval and is expected to close during the second quarter.
The Hydril pressure-control business manufactures, sells and services pressure control products and systems that control and contain fluid and gas pressure during drilling, completion and maintenance of oil and gas wells in harsh environments.