General Electrics, L&G, Boeing: Business news in brief on Monday May 23

General Electric to Invest $1.4bn in Saudi Arabia; L&G in £3bn annuities buy from rival Aegon; Boeing wins $11.3bn order for 100 planes from VietJet

 

Zlata Rodionova
Monday 23 May 2016 16:10
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GE teams up with Saudi state-owned oil firm Aramco and others to open up economy
GE teams up with Saudi state-owned oil firm Aramco and others to open up economy

General Electric to Invest $1.4bn in Saudi Arabia

General Electric (GE) said Monday it made a series of deals with Saudi Arabia worth over $1.4 billion as part of the kingdom's ambitious plan to reduce its oil dependence by opening up its economy to international businesses.

The US conglomerate said it was partnering with Aramaco, the Saudi state-owned oil giant, to build a $400 million manufacturing facility for the energy and marine sector that is expected to create 2,000 new jobs by 2020.

GE also signed a memorandum of understanding to jointly invest $1 billion in several sectors such as water and aviation by 2017.

L&G in £3bn annuities buy from rival Aegon

Legal & General has acquired a £3 billion annuity portfolio from rival Aegon as part of the latter's major review of its UK operations.

The deal covers around 27,000 of in-payment policyholders, who will remain customers of Aegon until the transfer becomes effective. L&G, which manages annuities worth £45.5 billion globally, said its retirement business had written around £550 million of annuities so far this year.

Boeing wins $11.3bn order for 100 planes from VietJet

Boeing has won a contract for the supply of 100 airplanes from VietJet Aviation Joint Stock Company, a Vietnamese low-cost carrier. Valued at $11.3 billion (£7.78bn, €10.06bn) at current list prices, the deal was witnessed by US President Barack Obama, who is on a state visit and Tran Đai Quang, the president of Vietnam.

The budget carrier, which is famous for having flight attendants in bikinis, also expects revenue to double this year.

Japan ATM scam using fraudulent cards nets $12.7m

A total of 1.4 billion yen ($13m; £8.8m) in cash has been taken from ATMs in convenience stores across Japan using credit cards created with data stolen from a South African bank.

The withdrawals targeted 7-Eleven cash machines, which unlike most in Japan accept foreign cards. ATM transaction data suggests that data came from 1,600 credit cards issued by a South African bank.

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