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GE beats Siemens in competition for Alstom

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World Coal,

GE has beaten off competition from Siemens and Mitshubishi Heavy Industries (MHI) to acquire the energy arm Alstom after the French government signaled its approval of a revised deal. Under the new plan, the US conglomerate will acquire Alstom’s power and grid businesses for US$16.9 billion. Following completion of the deal, GE the two companies will form three joint ventures (JVs) covering the grid, renewables and nuclear/French coal businesses valued at US$3.5 billion.

GE received approval for its bid from the French government after the state acquired a 20% stake in Alstom that will allow it to maintain its influence in the three JVs, including a right-of-veto in the JV covering Alstom’s nuclear technology.

Under a final term of the agreement, GE will also sell its signaling business for US$825 million to boost Alstom’s remaining transport business.

GE first made an offer for Alstom in late April but this was blocked by the French government amid concerns over potential job losses and a foreign takeover of Alstom’s nuclear technology.

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