Date
30 March 2017
GE is said to have offered some concessions to allay EU concerns over the conglomerate's proposed acquisition of Alstom's power business. Photo: Bloomberg
GE is said to have offered some concessions to allay EU concerns over the conglomerate's proposed acquisition of Alstom's power business. Photo: Bloomberg

GE seen winning EU approval for US$14 bln Alstom deal

General Electric Co. (GE) is expected to win European Union nod for its proposed 12.4 billion euro (US$13.8 billion) purchase of Alstom’s power equipment business, Reuters reported.

The approval will come after GE offered some concessions, improving its package, to head off the European Commission’s worries about the deal, the report said, citing sources familiar with the matter.

GE is said to have earlier offered to divest some manufacturing and services activities and research and development units around the world, including a facility in Switzerland and Alstom’s Power Systems Manufacturing operation.

The green light from the European Commission will come 14 years after the latter rejected GE’s attempt at a US$42 billion takeover of Honeywell International, despite clearance by US authorities, the report noted.

The EU veto resulted in a barrage of criticism from US officials.

The current deal has the backing of the French state, which will buy up to 20 percent of Alstom from construction group Bouygues once the GE bid is cleared.

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RC

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