This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-27971122
The article has changed 3 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
France claims victory in Alstom deal with US rival GE | France claims victory in Alstom deal with US rival GE |
(about 1 hour later) | |
The boss of French rail and energy group Alstom says the $17bn (£10bn) deal to sell off most of its power generation business to US rival General Electric will protect France's interests and save jobs. | The boss of French rail and energy group Alstom says the $17bn (£10bn) deal to sell off most of its power generation business to US rival General Electric will protect France's interests and save jobs. |
"[It is] a combination of Alstom's qualities and GE's economic strength," said Alstom chief Patrick Kron. | "[It is] a combination of Alstom's qualities and GE's economic strength," said Alstom chief Patrick Kron. |
France approved the deal after securing an option to buy a 20% stake in Alstom. | France approved the deal after securing an option to buy a 20% stake in Alstom. |
The controlling stake will enable it to protect French interests. | The controlling stake will enable it to protect French interests. |
Alstom rejected a rival offer from Siemens and Mitsubishi Heavy Industries. | |
Joint ventures | |
The agreement comes after months of negotiations and, as a result of the French government's intervention, is substantially different from GE's original offer, which had been for a straightforward purchase of Alstom's power business. | The agreement comes after months of negotiations and, as a result of the French government's intervention, is substantially different from GE's original offer, which had been for a straightforward purchase of Alstom's power business. |
The new deal, which the government supports, will see GE buy Alstom's operations that manufacture natural gas turbines for power plants. | The new deal, which the government supports, will see GE buy Alstom's operations that manufacture natural gas turbines for power plants. |
In turn, Alstom will buy GE's railway signalling systems division. | In turn, Alstom will buy GE's railway signalling systems division. |
In addition, GE and Alstom will create three joint ventures, equally owned, for power grid, renewable energy and nuclear power businesses. | In addition, GE and Alstom will create three joint ventures, equally owned, for power grid, renewable energy and nuclear power businesses. |
Alstom's shares fell 1.8% in trading on Monday after the agreement with GE was announced. | |
'Ice-cold' | |
"This is a way of organising ourselves in the face of globalisation. It builds alliances rather than allowing France to become a giant shopping centre for foreign corporations to come and prey on our companies," said French economy minister Arnaud Montebourg. | "This is a way of organising ourselves in the face of globalisation. It builds alliances rather than allowing France to become a giant shopping centre for foreign corporations to come and prey on our companies," said French economy minister Arnaud Montebourg. |
A senior presidential aide said it was "perfectly natural" for the government to have intervened in the deal, noting nuclear power was strategically important. "Such a deal would have been impossible for a French company in the US," he added. | A senior presidential aide said it was "perfectly natural" for the government to have intervened in the deal, noting nuclear power was strategically important. "Such a deal would have been impossible for a French company in the US," he added. |
Mr Kron said buying a stake in Alstom would be a "good investment" for the French government. | Mr Kron said buying a stake in Alstom would be a "good investment" for the French government. |
"This is a company which has a strong potential of value creation and I'm expecting that all shareholders will benefit from this value creation," he said. | "This is a company which has a strong potential of value creation and I'm expecting that all shareholders will benefit from this value creation," he said. |
However, Peter Ramsauer, chairman of the German parliament's economics committee, criticised France's decision to favour the GE bid and reject the joint bid from Siemens and Mitsubishi Heavy Industries. | |
"The French government acts with ice-cold national industrial interest, and the French government has clearly put its own national interests, one-sided French concerns, ahead of European interests," he told German radio station Deutschlandfunk. | |
The deal, which still requires approval from shareholders and competition watchdogs, is expected to be completed in the first half of next year. | The deal, which still requires approval from shareholders and competition watchdogs, is expected to be completed in the first half of next year. |
"The process ahead is still heavy and complex," Mr Kron said. | "The process ahead is still heavy and complex," Mr Kron said. |
The future of Alstom, which employs 18,000 people in France out of a total 90,000 worldwide, is an important issue for Mr Hollande's government, which is battling to reduce a huge trade deficit and record unemployment. | The future of Alstom, which employs 18,000 people in France out of a total 90,000 worldwide, is an important issue for Mr Hollande's government, which is battling to reduce a huge trade deficit and record unemployment. |