Company's largest-ever industrial deal clears competition watchdogs in more than 20 countries
PARIS—GE has completed its largest-ever industrial acquisition.
The company secured the regulatory nod from more than 20 countries including the EU, U.S., China, India, Japan and Brazil, and has closed on its 9.7 billion euro, or US$10.6 billion, purchase of Alstom’s power and grid businesses.
“The completion of the Alstom power and grid acquisition is another significant step in GE’s transformation,” Jeff Immelt, chairman and CEO of GE, said “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.”
The two companies reached an initial 12.35 billion euro agreement in 2014, which has since been adjusted for joint ventures, changes in the deal’s structure and the effects of currency. GE said the economic and strategic rationale of the deal remain consistent.
In addition to the power and grid buy, GE has also completed the sale of its rail signaling business to Alstom for approximately $800 million.
The company said it continues to execute its strategy to become a simpler and more focused company.