USA, France:

GE Set To Expand Its Power Business With Alstom Acquisition (Forbes)

(Courtesy Alstom)

U.S. company General Electric is set to take over French company Alstom’s gas and steam turbine businesses after the latter’s board chose GE’s revised bid over a competing joint bid from Siemens and Mitsubishi Heavy Industries.

The French government has also supported this bid after disapproving the company’s previous bid, which sought to completely absorb Alstom’s power and grid businesses. In April, GE offered to buy Alstom’s power and grid businesses for an enterprise value of $13.5 billion. Combined with the $3.4 billion net cash held by these businesses, GE sought to take over Alstom’s power and grid businesses for a total sum of $16.9 billion. But the French government disapproved the offer, citing concerns related to loss of jobs from France and dissolution of an iconic French brand.

Over the next two months, Alstom received competing joint bid from Siemens and Mitsubishi Heavy Industries. But Saturday, June 21, Alstom’s board unanimously chose GE’s revised bid after GE CEO, Jeff Immelt, met with the French president Francois Hollande and also addressed the French parliament to resolve their concerns related to, among other things, loss of jobs from France as a result of this deal.

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