Published on April 28th, 2014 | by James Ayre10
GE May Buy Alstom For A Whopping $13 Billion!
April 28th, 2014 by James Ayre
General Electric is reportedly in talks to buy Alstom SA — one of the biggest energy solutions and transportation companies in the world — for more than $13 billion.
This would put the buying price about 25% higher than Alstom’s current market price. If completed, the acquisition of the French-owned multinational builder of power plants and trains will be GE’s largest ever.
If the deal goes through, an agreement may be announced as early as this week, according to Bloomberg‘s unidentified source.
The deal would give the US maker of jet engines and locomotives control of Alstom’s technology for power transmission and power plant maintenance as Europe’s economy starts to revive. A purchase of Alstom, which also sells high-speed TGV trains and rail signals, would be a rare example of a major French company being taken over by a US rival.
For a couple of examples of the technologies in question — the ones that GE will gain control of — see: Alstom Completes World’s Largest Offshore Wind Turbine; Alstom To Build Israeli Hydro Storage Power Plant; and Alstom Joins 250 MW Swansea Bay Tidal Power Project.
“Acquiring Alstom would put an exclamation point on GE’s return to deals,” stated Sanford C Bernstein analyst Steven Winoker. “It is among the best fits we have seen with the GE portfolio for some time.”
GE and Alstom have, again, reportedly, already held talks with government officials in France in order to address any potential political concerns that the government there may have.
We’ll keep you posted on any further developments. 🙂
Drive an electric car? Complete one of our short surveys for our next electric car report.
Keep up to date with all the hottest cleantech news by subscribing to our (free) cleantech newsletter, or keep an eye on sector-specific news by getting our (also free) solar energy newsletter, electric vehicle newsletter, or wind energy newsletter.