The General Electric Company's (NYSE:GE) Plastics deal will be huge. Tom Taulli recently posted on the Wall Street Journal's coverage of GE's club policy concerning any potential deal.
But PEHub's Dan Primack says that the Journal's got it all wrong. He says that GE's bankers for the deal, Goldman Sachs Group (NYSE:GS), "could care less" about any Department of Justice inquiry into collusion of private equity pals.
Goldman told only four firms that they couldn't play together: Blackstone, Apollo Management, Bain Capital and KKR. Those four firms, however, may still team up with other private equity firms as long as they get approval from Goldman to share the confidential documents of the deal. It's standard operating procedure on big deals for Goldman, which wants as many players in the sandbox as possible. It's just trying to keep the biggest kids on the block on separate teams.
So it's business as usual for the sake of competition, not collusion.
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