Alstom accepts GE offer


While the deal with the US corporation is dependent of approval from the regulators and representatives of Alstom's workforce, France's government has backed it, securing a 20 percent stake in Alstom, and taking other measures to protect French interests. A rival offer from Siemens-Mitsubishi Heavy Industries was rejected. If it is approved, the deal, said to be the largest industrial acquisition that GE has ever made, is expected to be completed in 2015.

GE's Chairman and CEO Jeffrey R Immelt (pictured) said the deal would be "good for France, GE and Alstom". As part of the deal GE will sell its railway signal business to Alstom, and set up three joint ventures with the French company, which would cover Alstom's power grid business, renewable operations, and nuclear steam turbines.

The government of France sought assurances that French energy and transport interests and jobs would be safeguarded. After long negotiations it reached agreement with Alstom's principal shareholder Bouygues to buy into the company. Bouygues, whose businesses range from construction to telecommunications, said the government's option to buy Alstom shares will last for 20 months and begin after the GE-Alstom deal closes. Under the agreement reached on June 22, the government can buy shares held by Bouygues at a discount to their market rate, with a minimum price of €35, adjusted for special dividends or other events that might influence the price in the meantime, according to Bouygues.