French government approved deal of Alstom and GE

The French government gave the green light to the acquisition of a large part of the energy business of Alstom by industrial conglomerate General Electric (GE) to 12.4 billion EUR. When the transaction is completed with GE, France will share up to 20% of Alstom Bouygues, says Economy Minister on Wednesday. Paris will protect their interests in the company. Earlier, it became clear that France has sold a share of 3.1% in energy company GDF Suez, as the money will fund the acquisition of state participation in the energy group Alstom. Paris sold 75 million shares and an option to sell up to 86 million shares, or 3.6% of the total share capital of GDF Suez. The French government is the main shareholder in GDZ Suez, as a share of 36.71% at the end of 2013. The Alstom’s shareholders will vote on the transaction with GE’s scheduled for the 19th General Assembly in December, said the French company, which bid and German conglomerate Siemens.

In the first half of 2014 Alstom reported record orders for 6.4 billion EUR and growth in revenue of 13%. For the fiscal year, the French industrial conglomerate expects growth in the high single-digit range.

GE won the race for the French energy group in the summer competition of Siemens. In summer, the Board of Directors of Alstom bid approved GE’s acquisition of the company. The Agreement provides for the US group to sell the French railway business for 825 million USD, and to form joint ventures with 50:50 to business electrical network operations wind energy business and nuclear turbines. Subsequently, the French government managed to compel GE to preserve the jobs of Alstom in France.