GE has carried out its largest acquisition to date with the acquisition of Alstom’s power and grid businesses for €9.7 billion. In 2014, GE reached an agreement with Alstom to purchase its power and grid businesses for €12.35 billion. But adjusting for the joint ventures announced in June 2014, changes in the deal structure, price adjustments for remedies, net cash at close, and including the effects of currency, the purchase price was finalised at €9.7 billion.
The purchase includes more than 1300 gas and steam turbines within various ongoing projects.
“The completion of the Alstom power and grid acquisition is another significant step in GE’s transformation,” stated Jeff Immelt, Chairman and CEO, GE. “The complementary technology, global capability, installed base, and talent of Alstom will further our core industrial growth. We are open for business and ready to deliver one of the most comprehensive technology offerings in the energy sector for our customers.”
Following this acquisition, GE has announced its new business: GE Power – combining GE Power & Water and Alstom Power.
Headquartered in Schenectady, Steve Bolze, will serve as President and CEO of GE Power, with over 65 000 employees in over 150 countries and estimated revenue of US$30 billion.
“We now offer utility and industrial power plant operators even more complete, customised ‘one-stop shop’ solutions – not just for developing new stations but also optimised life cycle support for existing facilities to support local energy security. Our portfolio of technologies include the world’s largest and most efficient gas turbine – the HA, full power plant components, boilers, steam turbines, reciprocating engines and more,” commented Bolze. “Being a digital industrial business, we also offer digital and software solutions, specifically our Digital Power Plant, which helps our customers increase output, improve efficiency, lower operating costs, improve integration of renewable energy and reduce unplanned downtime.”
Additionally, GE has also completed the sale of its rail signalling business to Alstom for approximately US$800 million.
Edited from press release by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/power/03112015/ge-acquires-alstom-power-and-grid-businesses-3099/