General Electric has closed its $10 billion deal with Alstom, a European power company, leading GE to control one-third of the globe’s power supply.
GE chairman and chief executive officer Jeff Immelt said: “The completion of the Alstom power and grid acquisition is another significant step in GE’s transformation”.
GE and Alstom agreed the €12.35bn deal in 2014. GE is organized around a global exchange of knowledge, the “GE Store”, through which each business shares and accesses the same technology, markets, structure and intellect. Each invention further fuels innovation and application across our industrial sectors. It is also a boon for a number of proposed projects.
It is an interesting dynamic that the first offshore wind farm being built in the U.S.is using Alstom turbines, which will soon fall into the GE-Alstom JV. The EC argued that less competition in the market could have a harmful impact on European energy consumers.
Alstom, which previously announced that it aimed to complete in the fourth quarter a sale transaction that will refocus it on the transport sector, said on Monday it planned to return between 3.2 and 3.7 billion euros of the sale proceeds to shareholders.
The company said it continues to execute its strategy to become a simpler and more focused company.
Its chair and CEO, Patrick Kron, said: “Today represents a major milestone in Alstom’s history”. We managed to secure a win-win deal with GE, which protects the interests of employees and customers in the energy businesses, while reinforcing Alstom’s positioning in the transport industry.