US conglomerate General Electric has agreed to buy the aviation business of Italian aerospace company Avio for 3.3 billion euros ($4.3 billion), or 8.5 times Avioís 2012 Ebitda, the companies said on Friday. Avio will strengthen GEís global supply chain capabilities as its engine production rates continue to rise to meet growing customer demand. Avio, which supplies engine parts for the Eurofighter Typhoon and engine makers GE and Rolls Royce Holdings, was acquired in 2006 by Cinven in a deal that valued the company at about 2.6 billion euros. The deal will not include Avioís aerospace unit. Avioís revenues in the aviation sector were 1.7 billion euros in 2011, with more than 50% derived from components for GE and GE joint venture engines.
Panasonic to appeal EU ruling on tube cartel
Japanís Panasonic said on Friday that it would appeal a decision by the European Commission to fine it 252 million euros ($327 million) on charges of fixing prices for TV and computer monitor cathode-ray tubes along with five other companies. The European Commission fined six firms, including Philips, LG Electronics, Toshiba, Samsung, SDI and French company Technicolor, a total of 1.47 billion euros, its biggest antitrust penalty in history. The Commission on December 5 said executives from the European and Asian companies had met until six years ago to fix prices and divide up markets for TV and computer monitor cathode-ray tubes, a business that has since been replaced by flat panel displays.
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