Editing General Electric Company

{{Short description|British engineering company (1886–1999)}}
{{distinguish|text=the former American company [[General Electric]] (GE)}}
{{Use British English|date=April 2016}}
{{Use dmy dates|date=April 2016}}
{{Infobox company
| name = General Electric Company plc
| logo = [[File:Logo General Electric Company.svg|frameless|class=skin-invert]]
| type = [[Public limited company|Public]]
| fate = Defence arm bought by [[British Aerospace]] to form [[BAE Systems]] (1999)<br />GEC renamed [[Marconi Communications|Marconi]] (1999)
| key_people = {{ubl|[[Hugo Hirst]] (founder)|[[Arnold Weinstock|Lord Weinstock]] (managing director)}}
| foundation = {{start date and age|1886}}
| defunct = {{end date and age|1999}}
| location = [[Coventry]], England
| successor = {{plainlist|
*[[BAE Systems|BAE Systems plc]]
*[[Marconi Communications|Marconi plc]]
*[[Otis Worldwide|Otis Worldwide Corporation]]
*[[Alstom|Alstom SA]]
*[[Osram]]}}
| industry = Engineering
| products = [[Electronics]]
}}
The '''General Electric Company''' ('''GEC''') was a major British industrial conglomerate involved in consumer and [[Arms industry|defence]] electronics, communications, and engineering.

It was originally founded in 1886 as '''G. Binswanger and Company''' as an electrical goods wholesaler based in [[London]]. It quickly adopted a then-unorthodox business model of supplying electrical components over the counter. In 1889, the business was incorporated as the '''General Electric Company Ltd''', and became a [[public limited company]] 11 years later. During the 1890s and 1900s, the company heavily invested into electric lighting, a sector that proved to be immensely profitable in the long term. The GEC was heavily impacted by the outbreak of the [[First World War]], supplying various goods to the military, and thus becoming a major player in the electrical industry. In 1921, a new purpose-built company headquarters (Magnet House) was opened in [[Kingsway, London]]; two years later, GEC's industrial research laboratories at [[Wembley]] (later named the [[Hirst Research Centre]]) also opened. In the 1920s, the company was heavily involved in the creation and roll-out of Britain's [[National Grid (UK)|National Grid]].

During the [[Second World War]], GEC made several significant contributions to the Allied war effort, such as the development of the [[cavity magnetron]] for [[radar]], various advances in communications technology, and the mass production of [[Vacuum tube|valves]], lamps, and lighting equipment. In 1961, GEC merged with [[Radio & Allied Industries]]. Throughout the mid-to-late 1960s, GEC's new managing director, [[Arnold Weinstock]], sought to [[Rationalization (economics)|rationalise]] the British electrical industry and boost efficiency via a series of cut-backs and mergers that returned the company to profit. GEC acquired [[Associated Electrical Industries]] (AEI) in 1967, and merged with [[English Electric]] one year later. The company continued to expand via acquisitions; between 1979 and 1981, GEC acquired [[W & T Avery]], ''Cincinnati Electronics'', and ''Picker Corporation''.

During the 1980s, the company was Britain's largest private employer with over 250,000 employees; becoming one of the first companies in the new [[FTSE 100 Index]] in 1984. It made profits in excess of £1&nbsp;billion per year at its peak in the 1990s. In June 1998, GEC sold its share of the joint venture [[Alstom|GEC-Alsthom]] on the [[Euronext Paris|Paris stock exchange]].<ref name=CH-GEC-ALS-01/> In December 1999, GEC's defence arm, [[Marconi Electronic Systems]] (MES), was sold to [[British Aerospace]], forming [[BAE Systems]]. The rest of GEC, mainly telecommunications equipment manufacturing, continued as [[Marconi Communications]].<ref name="GPT-H-04"/> After buying several US telecoms manufacturers at the top of the market, losses following the bursting of the [[dot-com bubble]] in 2001 led to the restructuring in 2003 of Marconi plc into [[Marconi Corporation plc]].<ref name="GPT-H-01"/> In 2005, the company failed to secure any part of [[BT Group|BT's]] [[BT 21CN|21st Century Network]] (21CN) programme; that same year, [[Ericsson]] acquired the bulk of the company; what was left of the business was renamed [[Telent]].

==History==
===Early years (1886–88)===
[[File:Sir Hugo Hirst, Bart (Forty Years of Electrical Progress).jpg|thumb|right|upright|[[Hugo Hirst]], {{Circa|1930}}]]
[[File:Main switchboard, c. 1888 (Forty Years of Electrical Progress).jpg|thumb|right|upright|Early switchboard, {{Circa|1888}}]]
GEC had its origins in the ''G. Binswanger and Company'', an electrical goods [[wholesaler]] established in [[London]] in the 1880s by a German-Jewish immigrant, Gustav Binswanger (later Gustav Byng).<ref name="Carlebach1991">{{cite book |first=Julius |last=Carlebach |title=Second Chance: Two Centuries of German-speaking Jews in the United Kingdom |url=https://books.google.com/books?id=a-6WlsDsuo8C&pg=PA362 |year=1991 |publisher=Mohr Siebeck |isbn=978-3-16-145741-8 |pages=362–}}</ref><ref name=ipd>{{cite web |url=http://www.ipdgroup.com.au/Page/About+Us/GEC+History.aspx |title=GEC History |website=IPD Group |access-date=5 June 2010 |archive-url=https://web.archive.org/web/20100329015638/http://www.ipdgroup.com.au/Page/About%2BUs/GEC%2BHistory.aspx |archive-date=29 March 2010 |url-status=dead}}</ref> Regarded as the year GEC was founded, 1886 saw a fellow immigrant, [[Hugo Hirst]], join Byng, and the company changed its name to ''The General Electric Apparatus Company (G. Binswanger)''.<ref name="ipd"/><ref name = "nationalarchives 1991">{{cite web |url = https://www.nationalarchives.gov.uk/nra/lists/GB-2004-GEC.htm#General%20Electric%20Co%20Ltd |title = Summary report on early corporate records of General Electric Company plc, electrical equipment manufacturers, London |publisher = Historical Manuscripts Commission |via = nationalarchives.gov.uk |first = S. |last = Roberts |date = September 1991}}</ref>

Their small business found early success with its unorthodox method of supplying electrical components over the counter. Hugo Hirst was an entrepreneurial salesman who saw the potential of electricity and was able to direct the standardisation of an industry in its infancy. He travelled across Europe with an eye for the latest products, and in 1887 the company published the first electrical catalogue of its kind.<ref name="ipd"/> The following year, the company acquired its first factory in [[Salford, Greater Manchester|Salford]], where [[electric bell]]s, telephones, [[ceiling rose]]s and switches were manufactured.<ref name="ipd"/>

===Incorporation and expansion (1889–1913)===
In 1889, the business was incorporated as a private company known as the ''General Electric Company Ltd''.<ref name=ipd/> The company was expanding rapidly, opening new branches and factories and trading in 'everything electrical', a phrase that was to become synonymous with GEC.{{citation needed|date=May 2020}} 

In 1893, it decided to invest in the manufacture of lamps. The resulting company, (to become [[Osram]] in 1909),{{clarify|reason=Osram article completely contradicts this.|date=July 2013}} was to lead the way in lamp design, and the burgeoning demand for electric lighting was to make GEC's fortune.<ref name = "nationalarchives 1991"/>

In 1900, GEC was incorporated as a [[public limited company]], The General Electric Company (1900) Ltd (the '1900' was dropped three years later).<ref name=ipd/> In 1902, its first purpose-built factory, the [[Witton, West Midlands|Witton]] Engineering Works, was opened near [[Birmingham]].<ref>{{cite web |url = http://www.birminghamconservationtrust.org/2015/03/20/friday-photo-administration-block-to-the-former-gec-witton-works/ |title = Friday Photo: Administration Block to the former GEC Witton Works |publisher = birminghamconservationtrust.org |first = Julie |last = Webb |date = 20 March 2015}}</ref>

In 1907, GEC set up the ''Peel-Conner Telephone Works'' to manufacture telephone exchanges and telephones for the GPO; GEC supplied a large CB manual exchange for Glasgow in 1910. The British telephone system had been taken over and was operated by the [[General Post Office]] (GPO or BPO, a government department). The telephone manufacturing section moved from Manchester to Coventry in 1919, and GEC was one of the "ring" of four (later five) companies supplying the GPO with [[Strowger system|Strowger]] automatic telephone exchanges (called "Step-by-Step" or SXS) in use from the 1920s to the 1960s.<ref>{{Cite book |last=Robertson |first=J. H. |year=1947 |title=The Story of the Telephone: A History of the Telecommunications Industry of Britain |publisher=Pitman |location=London |isbn= |pages=95–96}}</ref> In 1910, the [[measuring instrument|meter]] department, also based at Peel Works, was incorporated separately as [[Salford Electrical Instruments]].<ref name="GEC Telephone">{{cite journal |author1=Bob Estreich |author2=Alan Gall |title=GEC and the Telephone |journal=The Institute of Science & Technology |issue=Spring 2008 |pages=10-14 |url=https://istonline.org.uk/cms/wp-content/uploads/2018/08/ist-journal-2008-spring.pdf |access-date=6 December 2024 |issn=0141-9099}}</ref>

With the death of Gustav Byng in 1910, Hugo Hirst became the chairman as well as managing director, a position he had assumed in 1906.<ref name=ipd/> Hirst's shrewd investment in lamp manufacture was proving extremely profitable. In 1909, Osram began production of the most successful tungsten filament lamps in the industry. Rapidly growing private and commercial use of electricity created huge demand. The company expanded both at home and overseas, with the establishment of agencies in Europe, Japan, Australia, South Africa, and [[India]]. It also did substantial trade with South America.{{citation needed|date=May 2020}}

===World Wars and post-WWII (1914–60)===
The outbreak of the [[First World War]] transformed GEC into a major player in the electrical industry. The company was heavily involved in the war effort, supplying products such as radios, [[signal lamp]]s, and the [[Arc lamp|arc-lamp]] [[carbon]]s used in [[searchlight]]s.<ref name=ipd/>

In 1917, GEC created the [[Express Lift Company]] in [[Northampton]], England.<ref>{{cite web|url=http://www.britishtelephones.com/gec/gecroots.htm|title=Roots of the Company – The rise and fall of the GEC empire |website=BritishTelephones.com |access-date=3 July 2013}}</ref>

During the [[interwar period]], GEC expanded to become a global corporation and national institution. The takeover of Fraser and Chalmers in 1918 took GEC into heavy engineering and bolstered their claim to supply 'everything electrical'. In the same year, the maker of electricity meters, Chamberlain and Hookham, was also acquired by GEC.<ref>{{cite web |url=http://www.gracesguide.co.uk/Chamberlain_and_Hookham |title=Chamberlain and Hookham |work=Grace's Guide}}</ref>

In 1919, GEC merged its [[Vacuum tube|radio valve]] manufacturing interests with those of the [[Marconi Company]] to form the [[Marconi-Osram Valve|Marconi-Osram Valve Company]].<ref>{{cite book |title=The Saga of Marconi-Osram Valve: A History of Valve-making |first1=B. |last1=Vyse |first2=G. |last2=Jessop |year=2000 |isbn=0-9539127-0-1}}</ref>

In the 1920s, the company was heavily involved in the creation of the UK-wide [[National Grid (Great Britain)|National Grid]].<ref name=ipd/> The opening of a new purpose-built company headquarters (Magnet House) in [[Kingsway, London]] in 1921, and the pioneering industrial research laboratories at [[Wembley]] in 1923 (later named the [[Hirst Research Centre]]),<ref>{{cite book |last1=Clayton |first1=Robert |url=https://books.google.com/books?id=7ibSYLBA6lIC |title=The GEC Research Laboratories 1919–1984 |last2=Algar |first2=Joan |publisher=Peter Peregrinus |year=1989 |isbn=0-86341-146-0 |author1-link=Robert James Clayton}}</ref> were symbolic of the continuing expansion of both GEC and the electrical industry.<ref name=ipd/>

During the [[Second World War]], GEC was a major manufacturer of electrical and engineering products for the British armed forces.<ref name=ipd/> Significant contributions to the war effort included the development in 1940 of the [[cavity magnetron]] for [[radar]],<ref name=ipd/> by the scientists [[John Randall (physicist)|John Randall]] and [[Harry Boot]] at the [[University of Birmingham]], as well as advances in communications technology and the ongoing mass production of [[Vacuum tube|valves]], lamps and lighting equipment.

The post-war years saw a decline in GEC's expansion. After the death of Hugo Hirst in 1943, his son-in-law Leslie Gamage (elder son of the founder of [[Gamages]]), along with Harry Railing, took over as joint managing directors. Despite the huge demand for electrical consumer goods, and large investments in heavy engineering and [[Nuclear power in the United Kingdom|nuclear power]], profits began to fall in the face of competition and internal disorganisation.{{CN|date=September 2023}}

===Further expansion (1961–83)===
In 1961, GEC merged with [[Michael Sobell|Sir Michael Sobell's]] [[Radio & Allied Industries]], and with it emerged the new power behind GEC, Sobell's son-in-law [[Arnold Weinstock]], who became the managing director of GEC in 1963, and moved its headquarters from Kingsway to a new building at 1 Stanhope Gate in [[Mayfair]].<ref name=ipd/>

Weinstock embarked on a programme to [[Rationalization (economics)|rationalise]] the entire British electrical industry, beginning with the internal rejuvenation of GEC. In a drive for efficiency, Weinstock made cut-backs and instigated mergers, resulting in new growth for the company. GEC returned to profit and the financial markets' confidence was restored.

During the late 1960s, the electrical industry was revolutionised as GEC acquired [[Associated Electrical Industries]] (AEI) in 1967, which encompassed [[Metropolitan-Vickers]], [[British Thomson-Houston]], [[Edison & Swan Electric Light Company|Edison Swan]], [[Siemens Brothers|Siemens Brothers & Co]], [[Hotpoint]], [[William Thomas Henley]] and [[Birlec]].<ref name=ipd/><ref>{{cite web |url = https://api.parliament.uk/historic-hansard/commons/1967/nov/23/gec-and-aei-merger |title = G.E.C. and A.E.I. (merger) |publisher = [[Hansard]] |date = 23 November 1967}}</ref>

In 1968, GEC merged with [[English Electric]], incorporating [[Elliott Brothers (computer company)|Elliott Brothers]], the [[Marconi Company]], [[Ruston & Hornsby]], [[Robert Stephenson & Hawthorns]], the [[Vulcan Foundry]], [[Willans & Robinson]] and [[Dick, Kerr & Co]].<ref name="GPT-H-01"/><ref>{{cite web |url = https://collection.sciencemuseumgroup.org.uk/people/ap183/english-electric-company-limited |title = English Electric Company Limited |publisher = Science Museum Group |access-date = 24 September 2023}}</ref> The Elliot computer company became [[GEC Computers]], whose products were successful in academic computing and real-time process control in the 1970s and 1980s.

The Birmingham Witton works remained one of the company's biggest sites, producing high-voltage [[switchgear]] and [[transformer]]s, large generators, small motors, [[Mercury-arc valve|mercury arc rectifiers]] and traction components, until the plant was gradually sold off by Weinstock in 1969.

In 1969, a new subsidiary company was born, English Electric-AEI Traction Ltd. This new organisation slowly integrated together the traction divisions of both AEI and EE, culminating in 1972 when the company was renamed [[GEC Traction]] Ltd. Also added to the company was the industrial locomotive division of the former English Electric which was based at Vulcan Works, [[Newton-le-Willows]] (this later became a separate company, GEC Industrial Locomotives Ltd). The company had manufacturing sites at [[Manchester]], [[Preston, Lancashire|Preston]] and [[Sheffield]].

The company continued to expand with the acquisition in 1979 of weighing machine maker [[W & T Avery]], renamed GEC Avery.<ref>{{cite web |url = https://collection.sciencemuseumgroup.org.uk/people/cp17761/w-and-t-avery-limited |title = W and T Avery Limited: 1813 - 1979 |publisher = Science Museum Group |access-date = 24 September 2023}}</ref>

In April 1981, GEC acquired Cincinnati Electronics (CE), in [[Cincinnati]], Ohio, at the time owned by George J Mealey. CE was a leader in military radios and [[infrared]] technology, space electronics, and other high-security products, doing business throughout the world. (Now owned by L-3 Cincinnati Electronics.)

In 1981, GEC acquired Picker Corporation, an American manufacturer of medical imaging equipment.<ref>{{cite news |agency=Reuters |url=https://query.nytimes.com/gst/fullpage.html?sec=health&res=9B0DE4DA153CF936A15757C0A961948260 |title=Medical Venture By Philips and GEC |newspaper=[[The New York Times]] |date=25 April 1987 |access-date=5 June 2010}}</ref> GEC merged Picker with Cambridge Instruments, GEC Medical, and American Optical to form Picker International (PI). GEC Medical was itself an amalgamation of Watson & Sons Ltd, formed in the early 20th century in London and long a part of GEC, and A E Dean & Co of [[Croydon]]. In 1982, PI introduced the first 1.0T [[magnetic resonance imaging]] (MRI) unit. In 1998, it acquired the CT division of [[Elscint]] In 1999, the company changed its name to Marconi Medical Systems. In 2001, [[Philips]] bought Marconi Medical Systems for $1.1&nbsp;billion.<ref>{{cite web |url=http://www.medical.philips.com/us/about/company/historyandtimeline.wpd |title=Philips: Where did it all begin? |website=Philips Healthcare |date=16 September 2008 |access-date=5 June 2010}}</ref><ref name = "cover insider"/>

===Acquisitions and mergers (1984–97)===
GEC had become the UK's largest and most successful company and private employer, with about 250,000 employees.{{citation needed|date=February 2015}} In 1984, it became one of the first companies in the new [[FTSE 100 Index]], ranking third in value behind [[BP|British Petroleum]] and [[Shell plc|Shell Transport and Trading]].<ref>{{cite web |url = https://www.thetimes.com/business-money/companies/article/share-index-has-not-rewarded-innovation-jfp2b3zjgfg |title = Share index has not rewarded innovation |work = [[The Times]] |first = Graham |last = Searjeant |date = 11 May 2007}}</ref>

In 1985, GEC acquired [[Yarrow Shipbuilders]] from [[British Shipbuilders]].<ref name=govan>{{cite web |url = http://govan.eveningtimes.co.uk/area/what-do-you-know-about-govan.html |title = What do you know about Govan? |publisher = Evening News |archive-url = https://web.archive.org/web/20080705223004/http://govan.eveningtimes.co.uk/area/what-do-you-know-about-govan.html |archive-date=5 July 2008 }}</ref> In 1988, [[GEC Plessey Telecommunications]] (GPT) was created when GEC bought [[Plessey]].<ref name=ipd/> The following year, GEC and [[Siemens]] formed a joint company, GEC Siemens plc, to take over Plessey. As part of the deal, GEC took control of Plessey's avionics and naval systems businesses.<ref name=ipd/>

[[File:General Electric Company plc 1994.jpg|thumb|General Electric Company share certificate, issued in 1994]]
In early 1989, GEC and French company [[Alstom|Alsthom]] merged their power generation and transport businesses in a new joint venture, GEC-Alsthom.<ref name=CH-GEC-ALS-01>{{cite web |url=https://www.france24.com/en/20170926-alstom-key-dates-french-industrial-jewel |title=Alstom: the key dates of a French industrial jewel |work=france24.com |date=26 September 2017 |access-date=3 September 2023}}</ref><ref>{{cite web |url = https://collection.sciencemuseumgroup.org.uk/people/ap26977/gec-alsthom-limited |title = GEC Alsthom Limited |publisher = [[Science Museum Group]] |access-date = 24 September 2023}}</ref> In May 1989, GEC-Alsthom bought British rail vehicle manufacturer [[Metro-Cammell]].<ref>{{cite magazine |title=GEC swallows Metro-Cammell |magazine=[[Railway Gazette International]] |date=July 1989 |page=457}}</ref>

In early 1996, the [[Otis Elevator Company]] acquired The Express Lift Company from GEC.<ref>{{cite web |url=https://www.bloomberg.com/press-releases/1996-04-02/otis-elevator-and-general-electric-company-gec-reach-agreement |title=Otis Elevator and General Electric Company (GEC) reach agreement on purchase of Express Lift Company |date=2 April 1996 |website=Bloomberg |access-date=28 October 2021}}</ref> By the mid-1990s, GEC was making profits of £1&nbsp;billion, had cash reserves of £3&nbsp;billion, and was valued at £10&nbsp;billion.<ref name=olw>{{cite news |url=https://www.telegraph.co.uk/news/obituaries/1402296/Lord-Weinstock.html |archive-url=https://ghostarchive.org/archive/20220112/https://www.telegraph.co.uk/news/obituaries/1402296/Lord-Weinstock.html |archive-date=12 January 2022 |url-access=subscription |url-status=live |title=Obituary: Lord Weinstock |newspaper=[[The Daily Telegraph]] |date=24 July 2002 |access-date=9 November 2015}}{{cbignore}}</ref> 

The move towards electronics and modern technology, particularly in the defence sector, was a departure from the domestic electrical goods market. GEC acquired the [[Edinburgh]] based [[Ferranti]] Defence Systems Group in 1990 as well as part of Ferranti International's assets in Italy.<ref>{{cite news |url=http://www.heraldscotland.com/news/11979034.GEC_buys_out_Ferranti_____Shock_at__310m_deal_on_heels_of_radar_moves/ |title=GEC buys out Ferranti in shock £310m deal |newspaper=[[The Herald (Glasgow)|The Herald]] |date=24 January 1990 |access-date=9 November 2015}}</ref> It also bought [[Vickers Shipbuilding & Engineering]] (VSE) in 1995. VSE was willing to participate in a merger with a larger company to reduce its exposure to cycles in warship production, particularly in light of the post-[[Cold War]] "[[Options for Change]]" defence review. Following GEC's purchase, VSE became Marconi Marine.<ref>{{cite web |url = https://www.independent.co.uk/news/business/gec-makes-rival-bid-for-vsel-1445530.html |title = GEC makes rival bid for VSEL |work = The Independent |date = 29 October 1994}}</ref><ref>{{cite web |url = https://api.parliament.uk/historic-hansard/commons/1995/may/23/vsel |title = Parliamentary debates |publisher = [[Hansard]] |date = 23 May 1995}}</ref><ref>{{cite web |url = http://www.janes.com/articles/Janes-Navy-International-95/GEC-S-KNOCKOUT-BID-WINS-FIGHT-FOR-VSEL.html |title = GEC's knockout bid wins fight for VSEL |publisher = Jane's |date = 1995}}</ref>

During 1996, Lord Weinstock retired as GEC's managing director and was replaced by [[George Simpson, Baron Simpson of Dunkeld|George Simpson]].<ref name = "Julian destruction"/><ref name = "cover insider"/> In July 1997, the company announced the outcomes of a major review: it would move away from its joint ventures and focus on moving toward "global leadership" in defence and aerospace ([[Marconi Electronic Systems]]), industrial electronics (GEC Industrial Electronics), and communications ([[Marconi Communications|GEC Communications]]).<ref>{{cite news |title = Strategic shake-up at GEC |date = 9 July 1997 |newspaper = [[The Scotsman]]}}</ref> Simpson, along with finance director John Mayo, decided to pursue a risky strategy of pursuing fast growth via rapid acquisition of numerous other companies, particularly within the United States.<ref name = "Julian destruction"/>

In February 1998, [[Marconi Instruments]], the test equipment arm of GEC, was sold to [[IFR Systems]].<ref>{{cite web |url = http://www.marconi.com/Home/press_office/News+&+Events/News+Archive/1998/February/GEC+Sells+Marconi+Instruments |title = GEC Sells Marconi Instruments |website = Marconi |access-date = 17 December 2018 |archive-url = https://web.archive.org/web/20060118232138/http://marconi.com/Home/press_office/News%20%26%20Events/News%20Archive/1998/February/GEC%20Sells%20Marconi%20Instruments |archive-date = 18 January 2006 |url-status = dead}}</ref>

In March 1998, GEC announced the merger of its radar and avionics business with Alenia Difesa to form [[Alenia Marconi Systems]].<ref>{{cite news |url = https://www.independent.co.uk/news/business/gec-prepares-to-launch-pounds-5bn-telecoms-and-defence-strike-1148594.html |title = GEC prepares to launch £5bn telecoms and defence strike |newspaper = [[The Independent]] |date = 6 March 1998 |access-date = 9 November 2015}}</ref>

In June 1998, it completed the $1.4bn acquisition of major American [[Arms industry|defence contractor]] [[Tracor]], which became part of MES.<ref>{{cite news |url = https://query.nytimes.com/gst/fullpage.html?res=9403E4D81F3CF931A15757C0A96E958260&sec=&spon= |title = GEC of Britain agrees to buy Tracor |newspaper = The New York Times |date = 22 April 1998 |access-date = 5 June 2010}}</ref> The same month, GEC sold its share of the joint venture [[Alstom|GEC-Alsthom]] on the Paris stock exchange.<ref name=CH-GEC-ALS-01/>

After most of its US acquisitions failed, GEC began to make a loss. The cash reserves that Lord Weinstock had built up during the 1980s and early 1990s had been all but depleted, and the company was heavily in debt.<ref name=olw /><ref name = "cover insider"/>

===Marconi Electronic Systems sale (1998–99)===
In July 1998, reports began linking [[British Aerospace]] (BAe) with the German aerospace group [[DASA]] to create a new European Aerospace and Defence Company.<ref>{{cite news |title = Business: The Company File: Defense merger on the radar |url = http://news.bbc.co.uk/1/hi/business/the_company_file/130305.stm |work = BBC News |date = 10 July 1998 |access-date = 15 September 2007}}</ref><ref>{{cite news |title = BAe and Dasa discuss proposals for merger: Aerospace groups still have 'important issues to resolve' |work = Financial Times |page = 1 |date = 24 July 1998}}</ref> GEC was also seen as a potential partner in a three-way merger with BAe and DASA.<ref>{{cite web |url = http://news.bbc.co.uk/1/hi/business/the_company_file/239057.stm |title = GEC spoils DASA / BAe party |work = [[BBC News]] |date = 20 December 1998}}</ref>

In December 1998, reports emerged that GEC was seeking a partner for MES, the value of which was greatly increased by the Tracor acquisition. Prospective partners included [[Thomson-CSF]] (by 1998 on the path to privatisation) and various American defence contractors (e.g. [[Lockheed Martin]] and [[TRW Inc|TRW]]).<ref>{{cite news |url=https://www.latimes.com/archives/la-xpm-1998-dec-28-fi-58247-story.html |title=Lockeed, Britain's GEC may be in merger talks |newspaper=[[Los Angeles Times]] |date=28 December 1998 |access-date=5 June 2010}}</ref> GEC had already been active in pursuing consolidation in the defence business. In 1997, it made an ultimately unsuccessful bid to the French government to privatise Thomson-CSF and merge it with MES.<ref>{{cite web |url = https://www.independent.co.uk/news/business/gec-set-to-combine-marconi-with-thomsoncsf-1260347.html |title = GEC set to combine Marconi with Thomson-CSF
|work = The Independent |first = Michael |last = Harrison |date = 7 May 1997}}</ref><ref>{{cite web |url = https://collection.sciencemuseumgroup.org.uk/people/cp64488/thomson-csf |title = Thomson-CSF: 1968 - 2000 |publisher = [[Science Museum Group]] |access-date = 23 September 2023}}</ref>

A merger of UK companies soon became the most likely development. In mid-January 1999, GEC and British Aerospace confirmed they were holding talks. On 19 January, it was announced British Aerospace was to acquire Marconi Electronic Systems for £7.7bn ($12.75bn).<ref>{{cite web |url=http://www.janes.com/articles/Janes-Navy-International-99/BRITISH-AEROSPACE-AND-MARCONI-ELECTRONIC-SYSTEMS-FORM-THE-THIRD-LARGEST-DEFENCE-UNIT-IN-THE-WORLD.html |title=British Aerospace and Marconi Electronic Systems form the third largest defence unit in the world |website=Jane's International |date=19 January 1999}}</ref><ref>{{cite web |url=https://www.theguardian.com/business/1999/jan/19/7 |title=BAe set to sign A8bn GEC deal with merger |work=The Guardian |date=19 January 1999}}</ref><ref name="scotsman2000">{{cite news |first=Andrew |last=Turpin |title=BAE eyes US targets after profit rockets |work=The Scotsman |publisher=The Scotsman Publications |page=26 |date = 4 March 2000}}</ref>

===Marconi plc (1999–2002)===
While the deal was yet to be completed, GEC used much of the anticipated proceeds of the MES sale to buy companies in 1999. This move was part of a major realignment of the firm to focus on the burgeoning telecoms sector, and it became a radio, telecommunications and internet equipment manufacturer.<ref name = "msi aquapartners"/> At the time, financial markets approved of the strategy; GEC's share value set new all-time highs during early 1999.<ref>{{cite web |url = https://www.independent.co.uk/news/business/market-report-gec-the-star-as-market-soars-to-a-new-peak-1090155.html |title = Market Report: GEC the star as market soars to a new peak |work = The Independent |first = Francesco |last = Guerrera |date = 27 April 1999 }}</ref>

In 1999, Marconi plc purchased two American equipment-makers: RELTEC Corporation in March for £1.3bn, and [[FORE Systems]] in April for £2.8bn, to complement the telecommunication business of its subsidiary [[Marconi Communications]].<ref name="GPT-H-03"/><ref name = "cover insider"/> Later that year, GEC acquired [[Kvaerner]]'s [[Govan]] shipyard.<ref name="MPLC-H-05"/> In April 2000, it acquired [[Mobile Systems International]] in exchange for £391m.<ref name = "msi aquapartners">{{cite web |url = https://www.aquaapartners.com/transactions/marconi-plc-on-its-acquisition-of-mobile-systems-international-msi |title = Advised: Marconi PLC on its acquisition of Mobile Systems International (MSI) |publisher = aquaapartners.com |access-date = 23 September 2023}}</ref><ref>{{cite web |url = https://www.wirelessnetworksonline.com/doc/marconi-buys-msi-software-for-618-million-0001 |title = Marconi Buys MSI Software for $618 Million |publisher = wirelessnetworksonline.com |date = 25 April 2000}}</ref> Consolidating and monitoring the finances of these acquisitions soon added to the future difficulties encountered by Marconi.<ref name = "oracle reporting2001"/>

These acquisitions were made at the height of the [[dot-com bubble]], and the bursting of the bubble in 2001 took a heavy toll on Marconi.<ref name="MPLC-H-06"/><ref name="MPLC-H-07"/><ref name="MPLC-H-08"/> While the company initially chose to deny any impact to sales, the delayed issue of a profit warning spooked investors.<ref name = "Julian destruction"/><ref name = "oracle reporting2001">{{cite web |url = https://www.theregister.com/2001/07/17/oracle_aided_marconi_collapse/ |title = Oracle aided Marconi collapse |publisher = [[The Register]] |first = Kieren |last = McCarthy |date = 17 July 2001 }}</ref> In July 2001, Marconi plc suffered a 54% drop in its share price following the suspension of trading of its shares, profit warning, and redundancies. Having accumulated a sizable debt pile that was continuing to mount due to heavy losses, Marconi was facing bankruptcy.<ref>{{cite web |url = https://www.independent.co.uk/news/business/news/from-bluechip-giant-to-hitech-flop-the-aps30bn-fall-of-marconi-9153263.html |title = From blue-chip giant to hi-tech flop: the £30bn fall of Marconi |work = The Independent |first = Michael |last = Harrison |date = 6 July 2001}}</ref><ref name = "Julian destruction"/><ref name = "cover insider"/>

In September 2011, Simpson was forced to resign from Marconi and a new management team was brought in under Mike Parton, the new chief executive.<ref name = "cover insider">{{cite web |url = https://www.insidermedia.com/news/midlands/5579-cover-story-marconi |title = COVER STORY: Marconi |publisher = insidermedia.com}}</ref><ref name = "Julian destruction">{{cite web |url = https://www.london.edu/think/the-destruction-of-marconi |title = The destruction of Marconi |publisher = london.edu |first = Julian |last = Birkinshaw |date = 1 March 2004}}</ref> Shares that had been worth £12.50 at GEC's peak had fallen to £0.04. Lord Weinstock's own stake, once worth £480&nbsp;million, was reduced to £2&nbsp;million.<ref name="olw" /><ref name = "Julian destruction"/>

===Marconi Corporation plc and break-up (2002–05)===
On 19 May 2003, Marconi plc underwent a restructuring and became [[Marconi Communications|Marconi Corporation plc]], advised by [[Lazard]] and [[Morgan Stanley]].<ref name="GPT-H-05"/><ref name="GPT-H-06"/> Marconi shareholders received one Marconi Corporation share for every 559 Marconi shares. In a [[Debt restructuring#Debt-for-equity swap|debt-for-equity swap]], the firm's creditors received 99.5% of the new company's shares.<ref name="GPT-H-05"/><ref>{{cite web |url = https://www.ft.com/content/7d1e3a3e-2b54-11d9-92d4-00000e2511c8 |title = Desperate days, drastic measures |publisher = Financial Times |first = John |last = Gapper |date= 31 October 2004}}</ref><ref>{{cite web |url = https://www.accountancyage.com/2002/08/19/shareholders-lose-out-in-marconi-liquidation/ |title = Shareholders lose out in Marconi liquidation |publisher = accountancyage.com |date = 19 August 2002}}</ref> In October 2003, the company announced that it intended to pursue listing on the [[Nasdaq]].<ref>{{cite web |url = https://www.thefreelibrary.com/Marconi+to+List+on+Nasdaq-a0108454066 |title = Marconi to List on Nasdaq |publisher = thefreelibrary.com |date = 3 October 2003}}</ref>

In 2005, the company failed to secure any part of [[BT Group|BT's]] [[BT 21CN|21st Century Network]] (21CN) programme, surprising commentators and sending the company's shares tumbling.<ref>{{cite web |url = https://www.theregister.com/2005/04/28/marconi_21cn/ |title = Marconi savaged after failure to win BT 21CN deal, Share price falls 40 per cent |publisher = The Register |first = Tim |last = Richardson |date = 28 April 2005 }}</ref><ref>{{cite web |url = https://techmonitor.ai/technology/bt_names_suppliers_for_ip_network_marconis_out_huaweis_in |title = BT names suppliers for IP network: Marconi's out, Huawei's in |publisher = techmonitor.ai |date = 28 April 2005}}</ref><ref>{{cite web |url = https://www.investorschronicle.co.uk/2012/02/28/shares/news-and-analysis/marconi-future-in-doubt-after-bt-snub-WryEyvqA4QslnDeiYhap0I/article.html |title = Marconi future in doubt after BT snub |publisher = investorschronicle.co.uk |date = 5 May 2005}}</ref> Before the announcement, the investment bank [[Dresdner Kleinwort]] had said, "[Marconi is] so advanced with its products and so entrenched with BT Group plc that its selection looks certain."<ref>{{cite web |last=Le Maistre |first=Ray |title=Analyst: Marconi in Line for 21CN |website=Light Reading |date=27 April 2005 |url=http://www.lightreading.com/document.asp?doc_id=72867 |access-date=28 November 2006 |archive-date=25 September 2012 |archive-url=https://web.archive.org/web/20120925045101/http://www.lightreading.com/document.asp?doc_id=72867 |url-status=dead }}</ref> Various bids were received for the business, including one from [[Huawei|Huawei Technologies]], with whom Marconi already had a joint venture.<ref>{{cite web |url=http://news.bbc.co.uk/1/hi/business/4129612.stm |title=Marconi discussing £600m buy-out |website=BBC News |date=7 August 2005 |access-date=5 June 2010}}</ref>

Prior to the collapse of the Marconi group in 2005 and 2006, the company was a major supplier of [[Asynchronous Transfer Mode]], [[Gigabit Ethernet]], and [[Internet Protocol]] products. The majority of Marconi Corporation's businesses (including [[Marconi Communications]] and the rights to the Marconi name) were sold to [[Ericsson]] in 2005,<ref name="GPT-H-02"/><ref>{{cite web |url = https://techmonitor.ai/technology/ericsson_said_to_be_bidding_for_marconi |title = Ericsson said to be bidding for Marconi |publisher = techmonitor.ai |date = 10 October 2005}}</ref> and the remainder was renamed [[Telent]] plc.

On 27 October 2006, the company folded voluntarily.<ref name="GPT-H-07"/>

==See also==
* [[Aerospace industry in the United Kingdom]]
* [[GEC-Marconi scientist deaths conspiracy theory]]
* [[National Lift Tower]] – a lift test tower built by The Express Lift Company

==References==
{{Reflist|30em|refs=
<ref name="GPT-H-01">{{cite web |url = http://www.britishtelephones.com/histgec.htm |title = History of GEC |website = BritishTelephones.com |access-date = 12 July 2012}}</ref>

<ref name="GPT-H-02">{{cite web |last = Oates |first = John |url = https://www.theregister.co.uk/2005/10/25/ericsson_buys_marconi/ |title = Ericsson buys Marconi |website = The Register |date = 25 October 2005 |access-date = 5 June 2010}}</ref>

<ref name="GPT-H-03">{{cite press release |title = Marconi Establishes Enterprise Technology Centers |website = PR Newswire |date = 26 September 2000 |url = http://www.prnewswire.com/news-releases/marconi-establishes-enterprise-technology-centers-73408267.html |access-date = 20 January 2009 |archive-url = https://web.archive.org/web/20121015104808/http://www.prnewswire.com/news-releases/marconi-establishes-enterprise-technology-centers-73408267.html |archive-date = 15 October 2012 |url-status = dead}}</ref>

<ref name="GPT-H-04">{{cite web |title = History of Marconi plc |website = Funding Universe.com |url = http://www.fundinguniverse.com/company-histories/marconi-plc-history/|access-date = 14 July 2012}}</ref>

<ref name="GPT-H-05">{{cite web |url = http://edgar.secdatabase.com/660/115697303000451/filing-main.htm |title = MARCONI PLC, Form 6-K, Filing Date March 31, 2003 |website = secdatabase.com |access-date = 15 May 2018}}</ref>

<ref name="GPT-H-06">{{cite web |title = SEC ADR listing of Marconi Corporation plc |website = SEC |url = https://www.sec.gov/Archives/edgar/data/1122135/000119163803001378/0001191638-03-001378.txt |access-date = 14 July 2012}}</ref>

<ref name="GPT-H-07">{{cite web |title = Marconi (2003) plc |website = KPMG |url = http://www.kpmg.com/UK/en/WhatWeDo/Advisory/TransactionsRestructuring/Restructuring/Pages/M(2003)plcInLiquidation.aspx |access-date = 14 July 2012}}{{Dead link|date=August 2018 |bot=InternetArchiveBot |fix-attempted=yes}}</ref>

<ref name="MPLC-H-05">{{cite web |author=<!--Start Byline--><!--End Byline--> |url = http://money.cnn.hu/1999/07/15/europe/govan/ |archive-url = https://archive.today/20120714174747/http://money.cnn.hu/1999/07/15/europe/govan/ |url-status = dead |archive-date = 14 July 2012 |title = Kvaerner sells UK shipyard |website = CNN Money |access-date = 5 June 2010}}</ref>

<ref name="MPLC-H-06">{{cite news |url = http://www.economist.com/world/britain/displaystory.cfm?story_id=E1_NSQSRSR&CFID=49414028&CFTOKEN=49732461 |title = Back from the dead |newspaper = [[The Economist]] |date = 10 June 2004 |access-date = 5 June 2010 |url-status = dead |archive-url = https://web.archive.org/web/20121018052855/http://www.economist.com/node/2747878?story_id=E1_NSQSRSR&CFID=49414028&CFTOKEN=49732461 |archive-date = 18 October 2012}}</ref>

<ref name="MPLC-H-07">{{cite news |url = http://www.economist.com/world/britain/displaystory.cfm?story_id=E1_VDRRVPD&CFID=49414028&CFTOKEN=49732461 |title = Takeover of Marconi: Business past, business future |newspaper = The Economist |date = 27 October 2005|access-date = 5 June 2010 |url-status = dead |archive-url = https://web.archive.org/web/20121018053332/http://www.economist.com/node/5088530?story_id=E1_VDRRVPD&CFID=49414028&CFTOKEN=49732461 |archive-date = 18 October 2012}}</ref>

<ref name="MPLC-H-08">{{cite news |url = https://www.independent.co.uk/news/business/analysis-and-features/marconi-sells-to-ericsson-and-consigns-a-century-of-industrial-might-to-history-512596.html |archive-url = http://wayback.vefsafn.is/wayback/20100417063057/http://www.independent.co.uk/news/business/analysis%2Dand%2Dfeatures/marconi%2Dsells%2Dto%2Dericsson%2Dand%2Dconsigns%2Da%2Dcentury%2Dof%2Dindustrial%2Dmight%2Dto%2Dhistory%2D512596.html |url-status = dead |archive-date = 17 April 2010 |date = 26 October 2005 |access-date = 5 June 2010 |location = London |first = Michael |last = Harrison |title = Marconi sells to Ericsson and consigns a century of industrial might to history |work = The Independent}}</ref>

}}

==Further reading==
* {{cite book |last1=Jones |first1=Robert |last2=Marriott |first2=Oliver |year=1970 |title=Anatomy of a Merger – A History of GEC, AEI and English Electric |location=London |publisher=[[Jonathan Cape]] |isbn=0-224-61872-5}}
* {{cite book |last=Whyte |first=Adam Gowans |year=1930 |title=Forty Years of Electrical Progress |location=London |publisher=[[Ernest Benn Limited]] |ref=Whyte, 1930}}

==External links==
* [https://archive.today/20130411022623/https://googledrive.com/host/0B-UggpdTDpJELVBCN0NjVW5Cem8/p47.htm The History of the General Electric Company up to 1900 – Part 1 – ''GEC Review'', Volume 14, No. 1, 1999]
* [https://archive.today/20130411013458/https://googledrive.com/host/0B-UggpdTDpJEVnlQTjNrYjZsQ28/p147.htm The History of the General Electric Company up to 1900 – Part 2 – ''GEC Review'', Volume 14, No. 2, 1999]
* [https://archive.today/20130411013332/https://googledrive.com/host/0B-UggpdTDpJER2M5Z0VhT294Tkk/roots.html The Roots of GEC 1670 – 1999]
* [https://web.archive.org/web/20131024223259/https://googledrive.com/host/0B-UggpdTDpJEN3BvQ3J3azZzbjQ/index.html The former GEC Archives Collection – archived website]
* [https://archive.today/20130411033628/https://googledrive.com/host/0B-UggpdTDpJEWDRoalVnYVY2NFk/GECMarch.html Listen to the 1904 "GEC March"]
* {{PM20|FID=co/015696|TEXT=Documents and clippings about|NAME=}}

{{General Electric Company plc}}
{{Aerospace industry in the United Kingdom}}
{{FT 30 constituents}}

{{Authority control}}

[[Category:General Electric Company| ]]
[[Category:Defunct companies of the United Kingdom]]
[[Category:Manufacturing companies established in 1886]]
[[Category:Manufacturing companies disestablished in 1999]]
[[Category:Companies formerly listed on the London Stock Exchange]]
[[Category:1886 establishments in England]]
[[Category:1999 disestablishments in England]]
[[Category:British companies established in 1886]]
[[Category:British companies disestablished in 1999]]
[[Category:Radio manufacturers]]