General Electric Corp. won Justice Department approval Tuesday for its proposed $600 million purchase of Stewart & Stevenson Services gas turbine division.
The approval followed GE’s agreement to license a newly-formed joint venture, TransCanada Turbines, to perform maintenance and overhauls of certain GE-manufactured marine and industrial engines.
The department said the agreement resolved its concerns that the proposed merger would raise competitive issues in the repair of the GE engines. The concerns were triggered when GE granted a five-year license to TransCanada Turbines, of Calgary, Canada, to repair these engines.
Stewart & Stevenson, headquartered in Houston, was GE’s largest competitor worldwide in maintenance and overhaul services for the engines. The firm’s license would have been effective for another four years. It is the only North American company licensed to service certain GE engines.