After receiving the French government's blessing on Friday, General Electric's (GE) improved bid has been officially accepted by Alstom's (ALSMY) board. The approval marks an end to the bidding war between GE and Siemens (SIEGY)-Mitsubishi (MHVYF).
The closing of the deal is still contingent upon the French government finding an agreement with Bouygues (BOUYF). The former wishes to buy a 20% stake in Alstom before allowing GE to buy the group. After the French state purchases its 20% stake, Alstom will be left as a holding company, paving the way for three 50-50 joint ventures with GE.
Once the deal is closed, Alstom will then buy GE's train signalling business.
The approved offer still values the power equipment company at $17B, but prices the Alstom investment in the joint-ventures at $3.4B.