LONDON (

TheStreet

) --

General Electric

(GE) - Get Report

offered to buy the U.K.'s

Wellstream Holdings

, a maker of pipeline products for oil and gas transportation, for 800 million pounds ($1.3 billion).

GE is offering Wellstream shareholders 780 pence in cash and a special dividend of 6 pence in cash per Wellstream share.

The deal is expected to be completed in the first quarter of 2011. The Wellstream board will recommend shareholders accept the transaction.

Wellstream shares closed at 747 pence on Friday in London.

In a statement Monday, GE said Wellstream will broaden its subsea production systems equipment and service capabilities. It also will help it capitalize on growth in Brazil, Africa and Asia.

Wellstream had 2009 revenue of 386 million pounds ($602 million). Its sales backlog as of Nov. 16, 2010, was 250 million pounds ($398 million).

-- Written by Joseph Woelfel

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Joseph Woelfel

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