GE bids to buy Alstom's Thermal, Renewables and Grid businesses

Alstom has supplied components for multiple CSP plants, including the steam turbine for the Crescent Dunes CSP plant in the U.S. state of Nevada. Image: PRNewsFoto/SolarReserve
Alstom has supplied components for multiple CSP plants, including the steam turbine for the Crescent Dunes CSP plant in the U.S. state of Nevada. Image: PRNewsFoto/SolarReserve

General Electric (GE, Schenectady, New York, U.S.) has submitted a binding offer to acquire the Thermal, Renewables and Grid business units of Alstom SA (Levallois-Perret, France) for USD 13.5 billion in enterprise value and USD 3.4 billion in cash.

This includes Alstom's solutions for concentrating solar power (CSP) and collaboration with Soitec SA (Bernin, France) on concentrating photovoltaic (CPV) technology. The Alstom board of directors has received GE's offer and has appointed a committee to review the transaction by June 2nd, 2014.

“Alstom not only advances our strategic priorities and industrial growth, but is also expected to provide an excellent return on capital,” states GE Chair and CEO Jeff Immelt.

“Alstom’s businesses are very complementary in technology, operations, and geography to our power and grid businesses. We expect a collaborative and prompt integration that will yield efficiencies in supply chain, service infrastructure, commercial reach, and new product development.”

 

Deal expected to close in 2015

If this review is successful, the next step will be a works council consultation, after which Alstom will seek shareholder approval and regulatory approval. Alstom notes that Bouygues SA (Paris), a 29% non-controlling shareholder of the company, supports the transaction.

GE says that the all-cash transaction is valued at 7.9 times the 2013 pro forma EBITDA of the business units. The deal is expected to close in 2015.

 

2014-05-05 | Courtesy: GE; Image: PRNewsFoto/SolarReserve | solarserver.com © Heindl Server GmbH

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