The cost of doing business: GE and Wal-mart are expected to announce a $60 billion takeover on Thursday.
GE is one of the most popular companies in America and is the third-largest in the world.
And Wal-marts, the nation’s largest retail chain, owns over half of the nation with nearly 20 percent of total retail sales.
Now, it’s looking to take advantage of its position to win lucrative government contracts.
A new report by the National Association of Manufacturers and the Economic Policy Institute says the takeover of GE and its parent company, WalMart, will cost taxpayers $60,558 billion over the next 25 years.
The analysis, published in the Journal of Business and Economic Policy, says the cost will rise each year as the companies expand their operations and compete for government contracts with other companies.
“These deals are typically worth billions of dollars, but these costs are growing at the slowest rate in history,” said NAM economist William L. Hartung.
“GE is not a small company, and WalMart’s share of retail sales is not shrinking.”
The company will need to pay back the government contracts it took out before it acquired GE in 2006.
GE has agreed to a $3.3 trillion, five-year contract with the Department of Homeland Security, but the Department is asking for $6.5 trillion for the next two decades.
The $6 billion is being funded through a variety of government aid programs.
GE currently owes the U.S. Treasury $8.6 trillion in back taxes.
In 2017, the company earned a $1.8 billion profit, but a recent report by Moody’s Investors Service has it on track to make a loss of $1 billion this year.
The company is also paying back $2 billion of its $3 billion bondholders’ bailout.
GE will also have to repay a $2.6 billion loan to the Federal Deposit Insurance Corp. to fund its buyout.