Nod for Alstom energy arm’s sale to GE

Advanced Search

The story appears on

Page A7

December 20, 2014

GET this page in PDF

Free for subscribers

View shopping cart

Nod for Alstom energy arm’s sale to GE

Source: AFP | December 20, 2014, Saturday |

Print Edition

SHAREHOLDERS approved yesterday the 12.4-billion-euro (US$15.2 billion) sale of Alstom’s energy assets to US group General Electric, and the French company will refocus on high speed trains.

“It is the best solution for the future of Alstom,” Chief Executive Patrick Kron said at the meeting marked by sharp exchanges, saying the company had lost sufficient scale to compete in the energy sector.

Nevertheless, the sale that sees Alstom sell off about 70 percent of the company, was approved by 99.187 percent of the votes.

GE won a two-month deeply political battle to buy Alstom’s energy arm in late June, in the face of initial French government opposition and a rival joint offer from Germany’s Siemens and Mitsubishi Heavy Industries of Japan.

GE snapped up the prize of Alstom’s gas turbine unit — a large, lucrative business with long-term contracts and income stream that complements GE which is already the world leader in the sector.

But it had to agree to a number of other deals in order to win over the French government, which has a veto over sales in strategic sectors of the economy, and which was worried about job losses amid a recession and high unemployment.

GE also agreed to take on Alstom’s nuclear, steam turbine, offshore wind and hydro power businesses, which it will run as 50-50 joint ventures with French shareholders including, most importantly, the government.

Business Energy

About Us
|
Terms of Use
|
RSS
|
Privacy Policy
|
Contact Us
|
Shanghai Call Center: 962288
|
Tip-off hotline: 52920043

沪ICP证：沪ICP备05050403号-1
|
互联网新闻信息服务许可证：31120180004
|
网络视听许可证：0909346
|
广播电视节目制作许可证：沪字第354号
|
增值电信业务经营许可证：沪B2-20120012

Nod for Alstom energy arm’s sale to GE

Email this to your friend