The announcement came as no surprise. The European Commission opened, on 23 February, an in-depth (or phase two) investigation into the €12.45 billion deal between the American giant General Electric (GE) and the energy division of the French multinational Alstom.
The executive has reservations about the market for heavy-duty gas turbines (HDGT), used mainly in gas-fired power plants. "The transaction would bring together the activities of GE, the world's largest manufacturer of heavy-duty gas turbines, with those of Alstom, eliminating…
Background
Alstom decided, in 2014, to sell its energy activities in order to focus on transport. GE managed to beat Siemens (Germany) in a particularly tough negotiation. GE is expected to buy the thermal energy (including heavy-duty gas turbines at issue), renewables and grid divisions, as well as central and shared services. Alstom and GE will maintain capital ties in renewables, grids and nuclear activities, where three special purpose entities will be set up but not consolidated into the French group. GE will contribute its signalisation activity to Alstom.