ges alstom buyout approved by eu
Thursday 9 January 2025
Last Updated : GMT 09:40:38
Themuslimchronicle, themuslimchronicle

Ends months of uncertainty over deal

GE's Alstom buyout approved by EU

Themuslimchronicle, themuslimchronicle

Themuslimchronicle, themuslimchronicleGE's Alstom buyout approved by EU

French company Alstom
Strasbourg - Arab Today

The EU announced Tuesday it had approved a deal for US giant General Electric to acquire the energy business of French company Alstom for 12 billion euros ($13.4 billion), after Alstom agreed to sell some assets to an Italian rival.

The decision ends months of uncertainty and tension over the deal, part of a drive by the American conglomerate to stake more of its future on industrial operations.

EU anti-trust regulators had expressed concern the deal could lead to too much concentration in the gas-turbine sector, leaving only GE and Siemens in the highly strategic market.

"Following an in-depth review, the Commission has approved the acquisition of Alstom's energy businesses by General Electric subject to divestment of central parts of Alstom's heavy duty gas turbines business to Ansaldo," the European Commission said.

EU Competition Commissioner Margrethe Vestager said her greenlight was a "big deal", opening the way to GE's biggest-ever acquisition.

With it, GE also succeeds where it fell short with the EU's 2001 rejection of a takeover of fellow US giant Honeywell, which sent a shockwave across the world of big business.

Vestager said "the case illustrates that Europe is open to investment" but that "you cannot buy your way to a monopoly."

With the Alstom decision now behind her, the tough-minded former Danish finance minister must focus on Google, the US Internet giant.

The EU has filed formal anti-trust charges against Google's shopping services, but the Silicon Valley firm is not backing down calling the accusations "wrong".

- 'We are very happy' -

GE hailed the EU green light.

"We are very happy with this decision," said Mark Hutchinson, the GE executive in charge of handling the Alstom buyout.

"We wanted to preserve the economic rationale for this transaction. We believe we have achieved that," he said.

Alstom CEO Patrick Kron said that in addition to fulfilling the EU's wish to maintain competition, GE's commitments "protect the interests of Alstom employees, shareholders and customers."

GE also won regulatory clearance in the United States, but that was expected.

"We have had a very close and successful cooperation with the Antitrust Division of the US Department of Justice both as regards the investigation and the analysis of suitable remedies," Vestager told reporters at the European Parliament in Strasbourg.

The deal was first proposed a year ago but in a sign of the jitters it triggered in Brussels, the Commission twice delayed making a decision on whether to wave the buyout through.

The EU concerns centred primarily on possible distortions in the market for maintaining high-power gas turbines, used mainly in electricity generating plants.

This lucrative market is dominated by GE with a 50 percent stake, followed by Siemens of Germany, Mitsubishi Hitachi Power Systems, Alstom and Ansaldo Energia of Italy.

After initially putting up resistance, GE ultimately agreed to shed some maintenance service assets and patents to Ansaldo Energia.

Turbine maintenance is a money maker for GE and at the heart of the potential $3 billion in synergies it hopes to make in the deal with Alstom. It has forecast that after the deal its profits will double from 2016 to 2018.

GE has also promised the French government it will create a thousand jobs, among other commitments.  

The US giant had insisted it would not make concessions that would render the deal less attractive, but in the end it has seemingly given in, although not without winning a slightly lowered the selling price from Alstom.
Source: AFP

 

themuslimchronicle
themuslimchronicle

GMT 08:26 2018 Tuesday ,23 January

Five things to know about Davos

GMT 08:03 2018 Monday ,22 January

Saudi Arabia calls for oil producers

GMT 06:39 2018 Sunday ,21 January

Duterte bans Philippine nationals

GMT 11:50 2018 Saturday ,20 January

UK retail sales slide in December

GMT 06:22 2018 Friday ,19 January

To develop oil fields retaken from Kurds

GMT 12:41 2018 Thursday ,18 January

Sudan holds communist leader

GMT 07:37 2018 Wednesday ,17 January

Sudan police beat protesters at demo

GMT 07:31 2018 Tuesday ,16 January

UK construction firm Carillion collapses
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

ges alstom buyout approved by eu ges alstom buyout approved by eu

 



Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle

GMT 23:51 2017 Friday ,03 February

It's -5°C and it's snowing in the UAE

GMT 09:55 2017 Saturday ,09 December

Liquefied gas proving to be a natural for energy firms

GMT 05:45 2015 Thursday ,22 October

Top Venezuelan businessman accused of treason

GMT 09:46 2018 Thursday ,18 January

Trump’s presidency at a pivot point

GMT 10:00 2017 Friday ,03 November

Iceland's 'trustworthy' politician

GMT 10:27 2017 Tuesday ,05 December

accused of sexual harassment

GMT 20:08 2017 Friday ,30 June

September 22 - October 22

GMT 11:40 2017 Sunday ,19 November

North Korean foreign minister set to visit Cuba

GMT 16:03 2017 Wednesday ,15 March

Karla Hadad prefers her work as presenter

GMT 07:38 2015 Sunday ,12 July

WAH London unveils Immerge collection

GMT 20:31 2012 Friday ,10 February

Touch me do

GMT 15:18 2012 Saturday ,27 October

New Versace store in Soho

GMT 16:19 2012 Wednesday ,21 November

Die Hard 5 comes to Egypt next year
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
 
 Themuslimchronicle Facebook,themuslimchronicle facebook  Themuslimchronicle Twitter,themuslimchronicle twitter Themuslimchronicle Rss,themuslimchronicle rss  Themuslimchronicle Youtube,themuslimchronicle youtube  Themuslimchronicle Youtube,themuslimchronicle youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2023 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2023 ©

muslimchronicle muslimchronicle muslimchronicle muslimchronicle
themuslimchronicle themuslimchronicle themuslimchronicle
themuslimchronicle
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
themuslimchronicle, themuslimchronicle, themuslimchronicle