November 10 - Alstom has closed the sale of its energy activities to General Electric (GE) for approximately EUR12.4 billion (USD13.25 billion).
Consequently Alstom will now be entirely focused on its transport operations, having divested its power generation and grid activities.
The proceeds of the transaction will be used to acquire GE's signalling activities for around EUR700 million (USD748 million), as well as reinvest in three joint ventures with GE in the grid, renewable and French steam and nuclear fields for around EUR2.4 billion (USD2.56 billion).
Alstom says that due to its worldwide presence, as well as its complete range of solutions and constant innovation, it holds a leadership position in trains, services, systems and signalling, which has been reinforced by the acquisition of GE Signalling. This activity opens the signalling freight market to Alstom, while strengthening its presence in North America.
"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," said Alstom chairman and ceo Patrick Kron.
According to GE, this is the company's largest-ever industrial acquisition. After reaching an agreement with Alstom in 2014, both parties have required regulatory approvals from over 20 countries and regions before closing the sale.
"The completion of the Alstom power and grid acquisition is another significant step in GE's transformation," said GE chairman and ceo Jeff Immelt. "The complementary technology, global capability, installed base, and talent of Alstom will further our core industrial growth."
GE confirmed that customers would realise an immediate benefit from the combination with Alstom, including in a number of current projects where GE and Alstom equipment has been procured. These include the New Jersey combined cycle power plant, PSEG Sewaren; Pakistan combined cycle power plant, Punjab Pakistan Bhikki; Texas power project Exelon Power Plants; and German combined heat and power project Chempark.
In addition, said GE, both parties are 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; while 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.
If any of HLPFI's readers have any opinions or comments on how this transaction will affect your business and the project forwarding market in general, please let us know at editorial@heavyliftpfi.com.
