Despite a counter offer from German engineering giant Siemens, which had teamed up with Mitsubishi Heavy Industries to make an offer of 14.6bn euros ($19.9bn), Siemens’ $17bn offer for the firm’s power businesses appears to have prevailed.
The firm is buying Alstom’s steam turbine, renewable energy and electrical transmissions business units, following a decision by French construction company Bouygues to sell of its stake in a deal that will see the French government pick up 20% of the company.
Under the terms of the deal, Alstom would buy GE’s transport and rail signalling business for $825mn. It has a workforce of 1,200 employees and revenues of $500mn a year. Alstom would also enter into a global alliance with GE and sell GE’s locomotives in territories outside the US.
Alstom chairman Patrick Kron said: “The combination of the very complementary energy businesses of Alstom and GE would create a stronger entity, best placed to serve customers globally and invest in people and technology over the long run.
“Alstom Transport, a solid leader with a large portfolio of technologies and a worldwide presence in a dynamic market, would be further strengthened through the acquisition of GE’s signalling business as well as a far-reaching rail alliance with GE.”
