GE updated its April 26 offer to acquire the Power and Grid businesses of Alstom (ALO.PA) after discussions with Alstom management and the French government on jobs, decision-making in France, access to nuclear steam turbine technology, and support for Alstom Transport.
GE’s valuation for Alstom remains unchanged.
GE Chairman and CEO Jeff Immelt said: “Our discussions with the French government over the past seven weeks have been productive. As a result, we have reached agreements with Alstom’s management that will create an alliance between our companies in both spirit and practice. The alliance will retain and strengthen France’s presence in the energy business and reinforce Alstom Transport. It creates jobs, establishes headquarters decision-making in France and ensures that the Alstom name will endure.
“This proposed alliance also preserves the value of this deal for GE investors”, Immelt said. “Our synergies remain intact. It is immediately accretive to our earnings, furthers the transition of our portfolio towards industrial businesses and broadens our product and service offerings for customers.”