Nov. 2, 2015, 7:10 AM
- Following regulatory approval in over 20 countries and regions, General Electric (NYSE:GE) has completed the acquisition of Alstom's (OTCPK:ALSMY) power and grid business - its largest-ever industrial acquisition.
- Adjusting for JVs announced in June 2014, changes in the deal structure, price adjustments for remedies, net cash at close, and the effects of currency, the purchase price is €9.7B ($10.6B).
- The company expects the deal to generate $0.05-0.08 of earnings per share in 2016 and $0.15-0.20 of earnings per share by 2018.
- GE also announced today it has completed the sale of its rail signaling business to Alstom for approximately $800M.
Sep. 8, 2015, 10:25 AM
- General Electric (GE +2.1%) officially wins European Union approval to buy most of Alstom’s (OTCPK:ALSMY +6.3%) energy business, as GE’s pledge to sell gas-turbine assets to an Italian rival helps ease antitrust concerns over the plan.
- GE says it will sell "central parts of Alstom’s heavy-duty gas turbines business” to Ansaldo Energia to ease the concerns of EU regulators that the deal would lead to higher prices in Europe for large gas turbines.
- GE also divest the long-term servicing contracts for 34 turbines that have already been installed by Alstom; GE has said that Alstom’s servicing contracts were a key part of the deal, but WSJ reports that the divested contracts amount to only 4% of Alstom’s total installed base.
Sep. 8, 2015, 4:54 AM
- European Union and U.S. antitrust regulators will today reportedly approve GE's (NYSE:GE) €12.4B ($13.9B) acquisition of the power business of French peer Alstom (OTCPK:ALSMY).
- The authorisation will come after months of wrangling, although it's not clear what conditions authorities will require for the deal to go through.
Sep. 1, 2015, 4:41 PM
- General Electric (NYSE:GE) is likely to win EU approval in the coming days for its $14B deal to buy Alstom’s (OTCPK:ALSMY, OTCPK:AOMFF) energy assets, Financial Times reports, citing people close to the deal who say GE has offered significant remedies.
- FT says sources at the European Commission and lawyers in Brussels believe GE had learned lessons from its failed 2001 attempt to buy Honeywell case, and noted that CEO Jeff Immelt had taken a far more diplomatic approach than his predecessor, Jack Welch; for example, Immelt visited the EU competition commissioner two times during negotiations.
- People in Brussels with knowledge of the case reportedly said technical points were still under discussion between GE and the EC but did not think those would stop the transaction from being approved.
Aug. 17, 2015, 5:35 AM
- Alstom (OTCPK:ALSMY) shares are riding high, following Friday's report that suggested GE will secure EU approval for its proposed €12.4B acquisition of the French firm's power unit.
- Italian company Ansaldo Energia (OTC:ASDOF) is considered the preferred buyer for the assets GE has offered regulators to clear the deal.
- Alstom shares +7.1% in France.
- Previously: Reuters: EU likely to approve GE deal to buy Alstom power unit (Aug. 14 2015)
Aug. 14, 2015, 12:57 PM
- General Electric (GE +0.7%) is expected to secure European Union antitrust approval for its proposed €12.4B ($13.7B) acquisition of Alstom's (OTCPK:ALSMY, OTCPK:AOMFF) power unit, Reuters reports.
- Italian company Ansaldo Energia (OTC:ASDOF) is considered the preferred buyer for the assets which GE has offered to sell, according to the report.
Jul. 27, 2015, 12:44 PM
- Alstom (OTCPK:ALSMY, OTCPK:AOMFF) says it will accept a €300M reduction in the price it will get for selling its power turbines unit to General Electric (GE +0.4%) as a contribution to GE's efforts to gain antitrust clearance in Europe for its acquisition of the company's energy assets.
- GE said on July 16 it had offered unspecified concessions in an attempt to counter EU regulatory concerns about the deal.
Jul. 20, 2015, 7:22 AM
- Alstom (OTCPK:ALSMY) posted an 8% rise in first-quarter sales today and confirmed its medium-term growth target.
- Overall, orders received totaled €2B, down from €4.8B in the same period a year before, after receiving a boost from a €4B jumbo rail contract in South Africa.
- The company also confirmed its sales forecast at over 5% a year organically in the medium term and that its operating margin should gradually improve within the 5-7% range.
- Regarding the GE deal: Alstom expects to complete the transaction in the coming months.
Jun. 30, 2015, 7:41 AM
- Alstom (OTCPK:ALSMY) CEO Patrick Kron is confident the planned sale of his group's power business to General Electric will win EU approval.
- "I do not see why Plan A would not work out," Kron told Le Figaro, when asked if he has any plan B should Brussels block the deal.
- The Commission is concerned the takeover would leave just two gas turbine companies in Europe, with GE competing against Germany's Siemens.
- Alstom's shareholders will meet today to defend and discuss the project.
Jun. 12, 2015, 2:47 PM
- General Electric (GE -0.6%) receives the European Commission's statement of objections relating to its proposed $17B acquisition of Alstom's (OTCPK:ALSMY, OTCPK:AOMFF) power business, a step that does not necessarily prejudge the final outcome of the deal review but highlights the tough negotiations that still lie ahead for GE to win consent for the deal more than a year after it was announced.
- In response to today's filing, GE says it is working "constructively" with the commission to explore remedies that could both address the EU's concerns and preserve the deal's economics, and that it still aims to close the transaction in H2 of this year.
- The timing of the statement of objections gives GE and Alstom about two months to reach a compromise with the EU ahead of its Aug. 21 deadline to rule on the deal.
- Earlier: Alstom will continue to defend GE deal
Jun. 12, 2015, 4:09 AM
- Alstom (OTCPK:ALSMY) says it will continue to provide evidence on the positive impact of its power unit sale to General Electric (NYSE:GE), following reports that stated EU antitrust regulators could issue a statement of objections today over the proposed bid.
- Such a document would set out the EU's view of why the deal is anti-competitive, and would be a prelude to a veto unless the companies come up with strong arguments or concessions.
- Previously: EU to warn GE on Alstom power deal (Jun. 11 2015)
Jun. 11, 2015, 7:12 AM
- EU antitrust regulators are poised to issue General Electric (NYSE:GE) a statement of objections over its proposed bid for Alstom's (OTCPK:ALSMY) power unit on Friday, Reuters reports.
- Such a document sets out the EU regulator's views why a deal is seen as anti-competitive and is a prelude to a veto unless companies come up with strong arguments or concessions.
May 20, 2015, 7:07 PM
- GE is willing to sell intellectual property rights to allay European Commission concerns that its $17B acquisition of Alstom (OTCPK:ALSMY, OTCPK:AOMFF) could distort competition in the gas turbine market, CEO Jeff Immelt said today.
- The comments are the most concrete indication to date of what remedy GE is willing to offer to break an impasse over approval for the deal.
- Immelt said GE would not do anything that impacts the service revenue stream.
- The EC has argued that a combined GE-Alstom would control about half of the market for 50Hz frequency turbines in Europe and the rest of the world excluding China; as a rule of thumb, the EC is wary of post-merger concentrations greater than 40%.
- GE rejects concerns that the tie-up would distort competition, saying that European demand is too small for distortions of competition to be a serious concern, as only about four gas turbines are sold in Europe each year out of global sales of 200.
- Earlier: Immelt presents: GE Capital sales ahead of plan
May 12, 2015, 7:15 AM
- EU antitrust regulators have resumed their investigation into General Electric's (NYSE:GE) bid for Alstom's (OTCPK:ALSMY) energy unit after receiving the information they had requested to conclude the case.
- The new deadline for a decision is Aug. 21, six weeks later than the initial deadline of July 8.
- Previously: GE would offer concessions to win EU approval for Alstom deal, exec says (May. 11 2015)
- Previously: GE, Alstom deal review set to resume (May. 11 2015)
May 11, 2015, 4:46 PM
- A General Electric (NYSE:GE) executive says the company would be willing to make concessions in order to win European regulatory approval to acquire Alstom's (OTCPK:ALSMY, OTCPK:AOMFF) power equipment business.
- “We are willing to explore remedies to get this deal done,” Steve Bolze, the head of GE’s Power and Water business, says, adding that the length of the European regulatory approval process is taking a toll on Alstom’s business.
- The comments come as the deadline for approval slid even further, to the third week in August, after European regulators held up their review for two weeks.
- Earlier: GE, Alstom deal review set to resume
May 4, 2015, 10:47 AM
- General Electric's (GE +0.6%) Jeff Immelt is schedule to meet EU antitrust chief Margrethe Vestager tomorrow, Reuters reports, amid an ongoing investigation into the U.S. group's €12.4B bid for Alstom (OTCPK:ALSMY).
- GE is looking to convince the European Commission to approve the deal without concessions.
- Previously: EU extends decision deadline for GE-Alstom deal (Mar. 17 2015)
- Previously: EU to opens probe into GE, Alstom deal (Feb. 23 2015)
- Previously: Reuters: EU regulators likely to probe deeper into GE, Alstom deal (Feb. 18 2015)