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CNBC's Maria Bartiromo Sits Down with Jeff Immelt, Chairman & CEO of General Electric, and Khaldoon Al-Mubarak, CEO of Mubadala, on CNBC's "Squawk on the Street" (Transcript Included)

GE
GE

WHEN: July 22nd, 10:30 AM ET
WHERE: CNBC's "Squawk on the Street"

Following is the unofficial transcript of a CNBC interview with Jeff Immelt, Chairman & CEO of General Electric, and Khaldoon Al-Mubarak, CEO of Mubadala, today on CNBC's "Squawk on the Street."

All references must be sourced to CNBC's "Squawk on the Street."

CNBC'S MARK HAINES: GENERAL ELECTRIC, PARENT COMPANY OF THIS NETWORK OUT WITH BIG NEWS THIS MORNING OF A NEW GLOBAL VENTURE. THEY'RE ANNOUNCING A PARTNERSHIP WITH THE ABU DHABI BASED MUDABALA. LET'S GO STRAIGHT TO CNBC'S MARIA BARTIROMO WHO HAS A SPECIAL GUEST.

CNBC'S MARIA BARTIROMO: THANK YOU VERY MUCH, MARK. JEFFREY IMMELT WITH ME, ALONG WITH MUBADALA CEO, KHALDOON AL-MUBARAK. NICE TO HAVE YOU ON THE PROGRAM GENTLEMEN. CONGRATULATIONS ON THIS IMPORTANT ANNOUNCEMENT. THERE IS A LOT HERE, SO LET'S GO THROUGH ITS AS FAR AS COMMERCIAL FINANCE, CLEAR ENERGY AND INVESTMENT FUNDS AND YOU BECOMING ONE OF THE TOP 10 SHAREHOLDERS IN GE. JEFF, WHAT ARE THE BIG OPPORTUNITIES FOR GE INVESTORS?

JEFF IMMELT: I THINK THERE'S ACTUALLY THREE. THE FIRST ONE IS THE FORMATION OF A COMMERCIAL FINANCE JOINT VENTURE. IT CAPITALIZES ON OUR RICH NATIONS SKILL AND MUBADALA'S GREAT POSITION GEOGRAPHICALLY. WE THINK IT GIVES US THE OPPORTUNITY TO DO MORE RICH NATIONS AT A TIME WHEN THE MARKETS ARE IN SOME DISARRAY WHICH I THINK IS A REAL POSITIVE, WE CAN DO INFRASTRUCTURE, A WHOLE SERIES OF THINGS AND I THINK THAT'S GOOD FOR GE INVESTORS. THE SECOND THING IS THE INDUSTRIAL INVESTMENTS WE'RE MAKING IN ABU DHABI WITH CLEAN ENERGY, CLEAN WATER, AVIATION, THAT ARE REALLY FAST GROWTH OPPORTUNITIES, BOTH IN THE REGION AND GLOBALLY. SO WE THINK THAT'S VERY POWERFUL FOR INVESTORS, AS WELL, AS WELL AS BUILDING A LEARNING CENTER. AND THEN THE THIRD ONE IS A JOINT INVESTMENT IN A FUND THAT MUBADALA STARTED. I THINK THERE'S THREE WAYS FOR GE INVESTORS TO WIN. THE BIG PICTURE IS WE'RE IN LINE WITH ONE OF THE MOST IMPORTANT GLOBAL PARTNERS, A COMPANY THAT WE ADMIRE, THAT WE THINK FITS VERY WELL WITH OUR SKILLS AND MAY BE ONE OF THE FASTEST GROWING PARTS OF THE WORLD RIGHT NOW. SO I THINK THIS IS A BIG PICTURE, A VERY BIG ALLIANCE FOR GE.

BARTIROMO: YOU'RE INVESTING SIDE BY SIDE, $4 BILLION FROM YOUR SIDE, $4 BILLION FROM YOUR SIDE. TELL ME WHAT KIND OF BEST PRACTICES AND WHAT ARE THE MOST IMPORTANT ASSETS THAT YOU SEE WITHIN THE GE FAMILY THAT WILL BE OPPORTUNISTIC FOR YOU?

KHALDOON AL MUBARAK: WELL, THIS IS AN EXTREMELY EXCITING TIME FOR US. THIS IS A WONDERFUL PARTNERSHIP THAT WE'VE BUILT OVER MANY MONTHS. AND I THINK THIS PARTNERSHIP TODAY THAT WE ARE FORMULATING REALLY SETS THE TONE IN TERMS OF HOW MUBADALA AND GE WILL DO BUSINESS IN THE FUTURE. IT'S AN $8 BILLION COMMITMENT FROM BOTH PARTIES TO FORM A JOINT VENTURE, FOCUSING ON COMMERCIAL BUSINESS FINANCE BASED OUT OF ABU DHABI. WE'RE GOING TO GO ON OFFENSE. WE SEE A LOT OF OPPORTUNITIES IN THE REGION. WE SEE A LOT OF OPPORTUNITIES AROUND THE WORLD. AND WE'VE AGREED TOGETHER THAT, YOU KNOW, WE'RE GOING TO GO AFTER THEM. AND WE'RE GOING TO GET THE BEST POSSIBLE RETURN ON EQUITIES FOR BOTH SHAREHOLDERS.

BARTIROMO: NOW, INITIALLY, YOU'RE GOING TO LOOK AT OPPORTUNITIES GENERATED THROUGH GE CAPITAL BUSINESS IN PLACE. THE ORIGINATION AND SERVICING CAPACITY OF $40 BILLION IN ASSETS. HOW DOES THIS IMPACT GE CAPITAL IN ITS CURRENT FORM, JEFF?

IMMELT: TWO THINGS. ONE, WE HAVE 11,000 ORIGINATORS FROM AROUND THE WORLD. WE HAVE THE BEST RISK MANAGEMENT TEAM IN THE WORLD. EVEN IN TIMES OF CRISIS, OUR WRITEOFFS HAVE BEEN VERY LOW AND OUR MARGINS HAVE STAYED VERY HIGH. SO IT ALLOWS US TO EVEN HAVE MORE CAPACITY FOR OUR GREAT ORIGINATORS OUT THERE. WHICH AGAIN, ALLOWS US TO MIX UP INTO HIGHER RETURN OPPORTUNITIES OVER TIME. I THINK THE INTENTION OF BOTH PARTIES OVER TIME IS TO HAVE THIS BE A FULL FLEDGED JOINT VENTURE WHICH WE THINK OPENS UP ADDITIONAL AVENUES FOR US IN THE MIDDLE EAST AND AFRICA. WE THINK THERE WILL BE A TREMENDOUS AMOUNT OF CAPITAL INVESTED OVER THE NEXT THREE, FOUR, FIVE, TEN YEARS, WHICH WE THINK CAN ADD TO LONGER TERM GROWTH FOR GE CAPITAL. SO WE THINK FINANCIAL SERVICES WILL STAY ABOUT 45% OF OUR EARNINGS, BUT MARGINS WILL CONTINUE TO IMPROVE AND COMMERCIAL FINANCE IS OUR SWEET SPOT. SO THIS ALLOWS US, I THINK, TO REALLY STRENGTHEN THE COMPANY IN A PLACE WHERE WE'RE ALREADY VERY STRONG.

BARTIROMO: YOU'VE BEEN WORKING ON THE RENEWABLES PROGRAM FOR A LONG TIME. YOU BREAK GROUND WHEN? TELL US WHERE THAT STANDS AND WHAT THE BIG OPPORTUNITY IS FOR THIS PROJECT.

KHALDOON AL MUBARAK: WELL, WE'RE FIRM BELIEVERS IN RENEWABLE ENERGY. WE ARE BETTING ON IT. WE THINK THE FUTURE WILL BE IN SOLAR TECHNOLOGY. PHOTO VOLTAIC. WE ARE BUILDING A RENEWABLE ENERGY CITY IN ABU DHABI THROUGH MOSCOW WHICH IS AN INITIATIVE THAT WE LAUNCHED LAST YEAR. WE'RE GOING QUICKLY INTO THIS DEVELOPMENT. WE HAVE BROKEN GROUND INTO THIS DEVELOPMENT. I THINK TODAY IS A FORMULATION OF A PARTNERSHIP BETWEEN GE AND MUBADALA. WE SHARE OUR COMMITMENT TOWARDS RENEWABLE ENERGY IN THE FUTURE. AND I THINK CO-INVESTING TOGETHER IN THAT SPECTRUM, PUTTING A CENTER IN RESEARCH AND DEVELOPMENT IN ABU DHABI SHOWS HOW WE ARE SERIOUS ABOUT THIS BUSINESS AND ABOUT BUILDING THIS BUSINESS AND HOW THAT WILL BE A MAJOR PART OF BOTH GE'S AND MUDABALA'S FUTURE EARNINGS.

BARTIROMO: LET ME ASK YOU ABOUT THE IDEA THAT YOU THE EVENTUALLY BECOME ONE OF THE TOP TEN SHAREHOLDERS IN GE BY BUYING GE STOCK IN THE OPEN MARKET. WHAT'S YOUR TIMETABLE ON THAT? BY MY ESTIMATION, YOU WILL BE BUYING AT LEAST 120 MILLION SHARES, MORE THAN $3 BILLION BECAUSE THAT'S MORE THAN BANK OF AMERICA. WHAT'S YOUR TIMETABLE?

KHALDOON AL MUBARAK: WELL, I'D LOVE TO TELL YOU. FORTUNATELY, MY LAWYERS WILL PROBABLY KILL ME, SO NO, I THINK WE'RE GOING TO BE DOING IT IN THE NEAR FUTURE. WE'RE COMMITTED TO THIS COMPANY. WE FEEL GE IS, AGAIN, A WONDERFUL CULTURE OF EXCELLENCE. WELL STRUCTURED. WE LIKE THE MANAGEMENT TEAM. WE LIKE THE PHILOSOPHY OF THE COMPANY, WE LIKE THE TRACK RECORD, THE HISTORY. AND LOOKING AT THE FUTURE, I THINK WE'VE STUDIED THE COMPANY VERY WELL. TODAY, AS YOU KNOW, IT'S TRADING AT AN ATTRACTIVE PRICE, IN OUR OPINION. EVALUATION IN TERMS OF FORD PE IS AT A TEN-YEAR LOW.

IMMELT: NOT SO ATTRACTIVE FROM MY PORTFOLIO, BUT --

KHALDOON AL MUBARAK: WELL, ON THE GOOD SIDE, DIVIDEND YIELD IS ON A TEN-YEAR HIGH. SO IT MAKES SENSE. WE LIKE IT. WE'RE GOING TO START DOING IT SOON AND I THINK I'LL LEAVE IT AT THAT.

BARTIROMO: HAVE YOU SEEN MORE OPPORTUNITIES IN THE UNITED STATES AS A RESULT OF WHERE THE DOLLAR IS, AS A RESULT OF THE UNREST IN THE FINANCIAL MARKETS?

KHALDOON AL MUBARAK: WE THINK IT'S A VERY INTERESTING MARKET. WE VIEW THIS PARTNERSHIP WITH GE TODAY AS A WAY TO HAVE A VERY STRONG ALLIANCE WITH A COMPANY WITH A WONDERFUL TRACK RECORD. THAT KNOWS HOW TO IDENTIFY GOOD OPPORTUNITIES AND I THINK THAT'S WHAT WE'RE GOING TO TRY TO DO TODAY. GE AND MUBADALA TOGETHER WILL LOOK AT OPPORTUNITIES AND SEE WHERE IN THIS MARKET IS THE SWEET SPOT.

BARTIROMO: JEFF, YOU'VE BEEN TALKING ABOUT PARTNERSHIPS LIKE THIS FOR A LONG TIME. FOR A COUPLE OF YEARS I'VE HEARD YOU ON CONFERENCE CALLS TALKING ABOUT THAT. COULD WE SEE SOMETHING SIMILAR TO THIS WITH CHINA, WITH OTHER BIG INVESTORS AROUND THE WORLD?

IMMELT: LOOK, I THINK WE SHOULDN'T OVERDUE PARTNERSHIPS, BUT WHEN WE DO THEM, WE DO THEM IN A DEEP AND POWERFUL AND WE PUT THE WHOLE POWER OF THE COMPANY TOGETHER. NOW I TALK ABOUT IT FOR TWO REASONS, REALLY. I THINK PARTNERSHIPS ARE MORE IMPORTANT TODAY THAN EVER BEFORE. ONE, IS OUR PROSPECTS FUNDAMENTALLY, OUR FASTEST GROWTH PROSPECTS ARE OUTSIDE THE UNITED STATES. AND WE ARE A GREAT GLOBAL COMPANY, BUT WE NEED PARTNERS AS WE UNCOVER NEW AREAS FOR INVESTMENT, NEW AREAS FOR GROWTH AND PARTNERS MAKE US SMARTER AND BETTER AS WE DO THAT, NUMBER ONE. NUMBER TWO, THERE'S NO COMPANY LIKE GE. WE'RE A MULTI BUSINESS INDUSTRIAL FINANCIAL COMPANY THAT MAKES US, I THINK, ATTRACTIVE TO THE BEST OF THE BEST OF THE PARTNERS AROUND THE WORLD. SO I THINK WE CAN HAVE A GREAT PARTNER LIKE MUBADALA TO JOIN WITH US IN THAT BECAUSE WE ARE -- WE HAVE THIS UNIQUE STRUCTURE. SO I THINK PARTNERSHIPS ARE IMPORTANT. WE MAY DO MORE. BUT THE ONES WE DO, WE WANT TO HAVE IMPACT. IN OTHER WORDS, WE DON'T WANT TO DO SO MANY IT GETS WATERED DOWN. WE WANT TO DO THEM SELECTIVELY AND MAKE THEM BIG. WIN-WINS FOR BOTH PARTNERS.

BARTIROMO: WHAT ABOUT A WIN-WIN FOR ENERGY RIGHT NOW, JEFF? WE ARE IN A CRISIS SITUATION. SURE, OIL IS DOWN AGAIN TODAY, A COUPLE OF DAYS HERE. BUT WHAT IN YOUR VIEW IS THE MOST VIABLE ALTERNATIVE TO OIL WHEN IT COMES TO, WELL, TRANSPORTATION?

IMMELT: WELL, I WOULD SAY TWO THINGS. I THINK FIRST OF ALL WE OUGHT TO BE BETTING ON A MULTITUDE OF TECHNOLOGIES. GAS, COAL, NUCLEAR, RENEWABLES. AS A COUNTRY AND AS A COMPANY, WE WANT TO BET ON A MULTITUDE OF TECHNOLOGIES. RENEWABLES, WE HVAE GOT TO SET A GOAL THAT RENEWABLES BECOME 20% OF THE ENERGY IN THIS COUNTRY BY 2020. WE THINK WE CAN GET THE COST DOWN. THINGS LIKE WIND AND SOLAR ARE VERY IMPORTANT. YOU KNOW, THE AMOUNT OF MONEY THAT'S BEEN SPENT IN R & D, IN ENERGY OVER THE PAST 25, 30 YEARS IS A JOKE. YOU KNOW, IT'S -- AND WE NOW HAVE TO RAMP UP TECHNOLOGY IN R&D IN THE FUTURE. SO I THINK THAT'S GOT TO BE -- RENEWABLES HAVE TO BE IN THE LEAD AND NUCLEAR POWER AND THINGS LIKE THAT HAVE TO COME ALONG WITH IT. BUT WE'RE INVESTING THAT WAY. LET'S LOOK. I DON'T KNOW. WE'VE BEEN FRIENDS FOR FOUR OR FIVE YEARS. YOU KNOW, YOU GO TO ABU DHABI WHICH IS IN THEORY ONE OF THE MOST IMPORTANT OIL GENERATED COUNTRIES IN THE WORLD AND THEY'RE BUILDING A RENEWABLE ENTERPRISE, A CLEAN ENERGY CITY, YOU KNOW? SO THEY'RE THINKING, 10, 20, 30 YEARS AHEAD AND I THINK THAT'S WHAT WE'VE GOT TO BE DOING. IT'S VERY SMART. SO I THINK, YOU KNOW, TALKING ABOUT, YOU KNOW, YOU TALKING ABOUT NUCLEAR POWER AND THINGS LIKE THAT THAT, YOU KNOW, IN THEORY, IT SHOULD BE JUST THE OPPOSITE, BUT THAT'S WHAT'S GOING ON. SO I THINK IT'S VERY IMPORTANT FOR GE TO BE IN THE LEAD HERE. WE'RE GOING TO INVEST IN A LOT IN R&D. WE HAVE TO GET ON WITH MORE RENEWABLES, NUCLEAR, BUILDING UP THE GRID. YOU KNOW, I WOULD SAY A LOT OF THE STUFF THAT BOONE PICKENS IS TALKING ABOUT, LOOK, I AGREE WITH ALMOST EVERYTHING HE SAYS.

BARTIROMO: HE HAS HIS OWN PLAN HERE. I'D LIKE TO GET YOUR TAKE, BOTH OF YOU, ON WHERE WE ARE IN THIS ECONOMIC SLOWDOWN. CLEARLY IF YOU'RE IN YOUR REGION OF THE WORLD, YOU'RE IN BOONE MARKET TIMES AND YOU SEE REAL GROWTH GOING ON, WHERE ELSE ARE YOU SEEING GROWTH AROUND THE WORLD? WHERE ELSE ARE YOU SEEING GROWTH TODAY? WHAT WOULD YOU SAY ABOUT THE ECONOMIC SLOWDOWN?

KHALDOON AL MUBARAK: MARIA, YOU KNOW US. WE ARE LONG-TERM INVESTORS. WE HAVE A LONG-TERM MIND-SET. I THINK WITH THAT, OPPORTUNITIES COME IN SPECIFIC TIMES. TODAY I THINK THE MIDDLE EAST IS VERY EXCITING. SOUTHEAST ASIA IS QUITE INTERESTING. BUT AT THE SAME TIME, WE'RE LOOKING AT OPPORTUNITIES ALL OVER THE WORLD TODAY, THE UNITED STATES ALWAYS PRESENTS ITSELF AS AN INTERESTING INVESTMENT OPPORTUNITY. THERE ARE, YOU KNOW, VARIOUS INVESTMENTS WE'RE LOOKING AT RIGHT NOW IN THE UNITED STATES, IN EUROPE. WE WILL LOOK AT INVESTMENTS OPPORTUNITIES EVERYWHERE IN THE WORLD AND WHERE IT MAKES SENSE WE'RE GOING TO GO FOR IT AND WE'RE GOING TO CONTINUE TO BUILD WHAT -- YOU KNOW, WE HAD A WONDERFUL DISCUSSION LAST NIGHT, ME AND JEFF, AND I THINK ONE OF THE NICEST COMPLIMENTS WE'VE EVER HAD WAS A COMPLIMENT THAT JEFF GAVE US YESTERDAY WAS MUBADALA IS A GE IN THE MAKING. AND I THINK I BELIEVE THAT. I HOPE SO. THIS IS WHAT WE ASPIRE TO. WE'VE ALWAYS BEEN FANS OF THIS COMPANY. I THINK MUBADALA IS INVOLVED WITH ALL AREAS. WE POSITION OURSELVES VERY WELL IN OUR AREA AND THROUGH THIS PARTNERSHIP, WE'RE GOING TO BE DOING THINGS TOGETHER ALL OVER THE WORLD. THIS IS A WONDERFUL START TODAY.

BARTIROMO: WELL, I GUESS HAVING A CRONTONVILLE IN ABU DHABI WILL BE A HELP IN THAT REGARD...THE LEARNING CENTER.

KHALDOON AL MUBARAK: YOU HAVE TO BE IN THE FIRST CLASS, MARIA.

BARTIROMO: I WANT TO BE THERE, ABSOLUTELY. WHERE ARE WE IN THE ECONOMIC SECTOR, JEFF?

IMMELT: I WOULD SAY THE GLOBAL GROWTH CONTINUES. THE INFRASTRUCTURE GROWTH CONTINUES. THE U.S. CONSUMER IS STILL IN A TOUGH PLACE AND I THINK YOU SEE THAT AS EARNINGS COME IN. WE SAID THAT WHEN WE WENT THROUGH OUR SECOND QUARTER EARNINGS. HOUSING PRICES ARE STILL DECLINING. SO I STILL THINK, YOU KNOW, THERE'S GOING TO BE SOME, YOU KNOW, TOUGH TIMES AHEAD VIS-A-VE THE U.S. CONSUMER, I THINK MOST OF THAT HAS BEEN FACTORED INTO THE MARKET TODAY AND INTO THE PLANNING OF FINANCIAL SERVICES COMPANIES AND THINGS LIKE THAT. BUT THE GLOBAL ECONOMY, WE JUST DON'T SEE A SLOWDOWN IN INFRASTRUCTURE AND WE DON'T SEE A SLOWDOWN IN THE GLOBAL ECONOMY. AND I'M QUITE HEARTENED BY THE FACT THAT THOSE ENVIRONMENTS APPEAR TO CONTINUE TO BE VERY ROBUST.

BARTIROMO: AND THIS REALLY LEVERAGES NOT JUST THE FINANCIAL SERVICES PART OF THE BUSINESS, BUT INFRASTRUCTURE MOST IMPORTANTLY IN THE MID-EAST AND AFRICA.

IMMELT: ABSOLUTELY. I THINK THIS IS A MULTI BUSINESS COMPANY TO COMPANY APPROACH THAT WE LIKE. WE DO -- AGAIN, I TRAVEL THE WORLD AND HAVE A CHANCE TO MEET WITH INVESTORS AND GOVERNMENTS AROUND THE WORLD. I THINK WE SEE IN MUBADALA A COMPANY LIKE OURSELVES, FROM THE STANDPOINT OF NOT ONLY WHAT WE DO, BUT THE SPIRIT OF LEARNING THAT EXISTS. ONE OF THE CRITICAL BOTTLENECKS I THINK TO GROWTH IN THE MIDDLE EAST IS DEVELOPING A MANAGER CLASS OF PEOPLE THAT HAVE THE SKILLS TO BE GOOD LEADERS IN THE FUTURE. WE FIRST MET OR ONE OF THE FIRST PLACES WE MET WAS AT CROTONVILLE TWO OR THREE YEARS AGO. SO THAT'S BEEN IN THE SPIRIT OF WHAT MUBADALA WANTS TO DO. AS WE'VE GLOBALIZED OUR EDUCATION PROCESSES, WE THINK THIS IS A GREAT NEXT STEP FOR US.

BARTIROMO: SLOW DOWN GOES INTO '09?

IMMELT: YOU KNOW, I THINK HOUSING PRICES HAVE TO STABILIZE TO FEEL LIKE, YOU KNOW, WE'VE GOT A CONSUMER THAT'S FEELING WEALTHY AGAIN. AND I THINK THAT'S -- YOU KNOW, THAT'S ONE OF THE METRICS THAT I LOOK AT, MARIA.

BARTIROMO: GREAT CONVERSATION. WE'LL LEAVE IT THERE. MARK AND ERIN, BACK TO YOU.




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