Arab Today, arab today ges alstom buyout approved by eu
Last Updated : GMT 14:53:29
Arab Today, arab today
Arab Today, arab today

Ends months of uncertainty over deal

GE's Alstom buyout approved by EU

Arab Today, arab today

Arab Today, arab today GE'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

 

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*

Arab Today, arab today ges alstom buyout approved by eu Arab Today, arab today ges alstom buyout approved by eu

 



Arab Today, arab today
Arab Today, arab today Jordan airline suggests flyers 'talk'

GMT 11:59 2017 Friday ,24 March

Jordan airline suggests flyers 'talk'
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Dozens dead in US-led Syria strikes

GMT 08:35 2017 Thursday ,23 March

Dozens dead in US-led Syria strikes
Arab Today, arab today Former head of Egypt’s syndicate submits appeal

GMT 20:11 2017 Saturday ,25 March

Former head of Egypt’s syndicate submits appeal

GMT 14:47 2017 Tuesday ,21 March

Minister stresses his country's aspiration

GMT 20:24 2017 Monday ,20 March

MP reveals details of British delegation's visit

GMT 16:14 2017 Saturday ,18 March

Egyptian professor calls to get rid of corruption

GMT 11:04 2017 Wednesday ,15 March

Blames the government for economic crisis

GMT 11:52 2017 Tuesday ,14 March

MP reveals the country’s debts hit $100bn
View News in Arabic - Business: أخبار الاقتصاد
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today MP submits a petition to dismiss university head

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head
Arab Today, arab today Salvage of South Korea's Sewol ferry

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Renault Trezor wins design award

GMT 11:56 2017 Tuesday ,21 March

Renault Trezor wins design award
Arab Today, arab today Actress Mervat Amin reveals her role in new series
Arab Today, arab today 2017 already marked

GMT 15:25 2017 Tuesday ,21 March

2017 already marked

GMT 06:04 2017 Thursday ,23 March

Haifa Wahby bets on her new drama show

GMT 22:00 2017 Thursday ,23 March

Number of unwedded girls amounts to 2.5m

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 10:34 2017 Tuesday ,21 March

Mexico threatens to ditch US corn imports

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 20:03 2017 Saturday ,25 March

Health expert warns from dust sensitivity

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday