IT’S FINAL: GE BUYS FRANCE’S ALSTOM

GE Wins Alstom Energy Bid With France Buying 20% Stake

Richard Clough, Francois de Beaupuy and Alex Webb, June 22, 2014 (Bloomberg News)

General Electric Co. finally completed its long pending $17 billion purchase of Alstom’s gas turbine operations and formation of joint ventures with Alstom’s steam turbine, renewable energy and electrical-transmission businesses…The two factors allowing GE to win its bidding war with Siemens AG for Alstom were (1) GE turning over its rail-signaling operations to Alstom for $825 million, and (2) convincing shareholder Bouygues SA to sell as much as 20% of its ownership in Alstom to the French government…French law permits state intervention to block acquisitions of companies deemed to be of national importance and the Hollande government was blocking completion of the transaction until it was assured of 20% voting rights and the appointment of two government-named board members…This is GE’s biggest acquisition ever…Alstom built the French electricity grid and makes its high-speed trains and the turbines that generate most of its electricity… click here for more

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