Alstom considers GE's bid to acquire energy business

Tags: Alstom, Power
French firm Alstom today said it is considering the proposed acquisition of its energy business by US-based General Electric and has set up a panel to review the offer.

The board of Alstom has received a binding offer from GE to acquire its energy activities, the French firm said in a statement today.

The scope of the transaction includes the thermal power, renewable power and grid sectors, as well as corporate and shared services.

The move will help Alstom to strengthen its transport business and pay off debt, the company said.

"Should this offer be approved and completed, Alstom would refocus on its transport activities, for which it is a global leader. Alstom would use the sale proceeds to strengthen its transport business and give it the means of an ambitious development, pay down its debt and return cash to its shareholder," the company said.

Alstom builds the fastest train and the highest capacity automated metro in the world, according to its website.

The company provides integrated power plant solutions and associated services for various energy sources and offers solutions for power transmission, with a focus on smart grids.

With 65,000 employees, Alstom's energy businesses registered sales of 14.8 billion euros in fiscal 2012-13, it said. The proposed price for the transaction represents an equity value of 12.35 billion euros and an enterprise value of 11.4 billion euros, Alstom said.

The Alstom board has set up a committee of independent directors to review the proposed transaction by the end of May, taking into consideration the interests of all stakeholders, including the French State.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Kerala, god’s own country, will always be free spirited

    Candy is dandy, but liquor is quicker,” the celebrated American poet Ogden Nash had once said famously.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Varun Dutt

<b>Riskfactor</b>:The over-the-top effect effect

The overconfidence effect is a bias in which someone’s subjective ...

Parvez Imam

The absoluteness in representations

When a representation replaces the original object or subject, a ...

Dharmendra Khandal

Religion and conservation must go hand in hand

In 1986, former president of WWF International, HRH Prince Philip, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture