New York, Apr 9 (IANS/EFE): General Electric Co. announced Monday that it is spending $3.3 billion to buy Lufkin Industries Inc., a manufacturer of equipment used in oil drilling.

The conglomerate will pay $88.50 a share to Lufkin shareholders, a 38 percent premium over the share price at the end of trading last Friday.

Texas-based Lufkin specializes in making gear to lift crude oil and other hydrocarbons from wells where pressures are lower than normal.

The transaction is expected to be completed in the second half of the year, subject to approval by Lufkin shareholders and the relevant regulatory agencies, GE said.

"Advanced technologies, combined with new drilling practices, are revolutionizing the oil and gas industry," GE Oil and Gas CEO Daniel C. Heintzelman said in a statement.

"Lufkin's world-class people, equipment and services fit perfectly in our portfolio and will enable us to offer a wide range of artificial lift solutions to our customers in this fast-growing artificial lift sector," Heintzelman said.