General Electric gets green light for acquisition of Alstom

(Photo: alstom.com)

The Managing Board of the French railway and energy group, Alstom voted to accept the offer of General Electric (GE).

The American conglomerate GE offered USD 17 billion for Alstom’s energy business. The agreement should be approved by the regulator as well as the Alstom company management. The French government agreed to support agreement which will include governmental purchase of 20% of stake at Alstom and other steps for protection of French interests.

The competitive offer of Siemens-Mitsubishi Heavy Industries consortium was rejected.

The head of GE, Jeff Immelt, said that “the job will be favorable for France, GE and Alstom.”

If accepted, the work is expected to be completed in 2015. Reports show that this will be the biggest GE’s acquisition.

According to the agreement, GE will sell its business with railway signalization and Alstom, set up joint venture. The company will cover business in the fields: electrical networks, renewable energy sources and nuclear steam turbines.