US company completes acquisition of Alstom power and grid businesses

(VNF) - The world’s Digital Industrial Company GE from the US, announced that it has completed the acquisition of Alstom’s power and grid businesses as part of its largest-ever industrial acquisition.

(VNF) - The world’s Digital Industrial Company GE from the US, announced that it has completed the acquisition of Alstom’s power and grid businesses as part of its largest-ever industrial acquisition.

The completion of the transaction follows the regulatory approval of the deal in over 20 countries and regions including the EU, US, China, India, Japan and Brazil.

US company completes acquisition of Alstom power and grid businesses
This major American corporation and one of the largest and most persified corporations in the world reached an agreement with Alstom in 2014 to purchase Alstom’s power and grid businesses for EUR12.35 billion. Adjusting for the joint ventures announced in June 2014 (renewable, grid, and nuclear), changes in the deal structure, price adjustments for remedies, net cash at close, and including the effects of currency, the purchase price is EUR9.7 billion (around USD10.6 billion). This includes working capital usage of approximately EUR0.6 billion this October.

Following that, it expects the deal to generate USD0.05-0.08 of earnings per share in 2016 and USD0.15 - 0.20 of earnings per share by 2018. The Company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive, is targeting USD3.0 billion in cost synergies in year five and strong deal returns. The overall economics and strategic rationale remain the same as GE announced in April 2014.

“The completion of the Alstom power and grid acquisition is another significant step in GE’s transformation. The complementary technology, global capability, installed base, and talent of Alstom will further our core industrial growth. We are open for business and ready to deliver one of the most comprehensive technology offerings in the energy sector for our customers,” said Jeff Immelt, GE Chairman and CEO.

In addition, GE and Alstom are both preferred bidders for a combined cycle plant project in Asia that would use two GE 7HA gas turbines, two Alstom HRSGs and one Alstom steam generator, and Alstom is the preferred bidder for Arabelle steam turbines in two UK nuclear reactors; the preferred bidder for boilers, steam turbines and generators a clean coal project in the Middle East; and has successfully delivered India’s first 800 kV High Voltage Direct Current (HVDC) power transformer for the Champa-Kurukshetra project.

Besides, GE has also completed the sale of its rail signaling business to Alstom for approximately USD800 million./.

( VNF )

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