French Government authorizes Alstom’s repurchase by General Electric

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Since last June, French Government and General Electric (GE) agree but it’s only on 5 November that France’s Economy Minister Emmanuel Macron announces in Paris a purchase of Alstom by GE for €12.4bn. The statement said: “Emmanuel Macron … gave today his authorization to General Electric for the realization of its investment project in France with Alstom and the creation of an industrial alliance between the two groups in the energy sector.

 

Joint site of GE and Alstom in Belfort (France)
Joint site of GE and Alstom in Belfort (France)

General Electric doesn’t buy the entire French engineering group but only its energetic branch, representing 70% of turnover and 9000 employments of Alstom.
The French group which produces TGV (high speed trains) will create with GE three joint ventures equally owned in renewable energy, power systems and steam turbines.

 

Because of this purchase, France is criticized, and the German politician Peter Ramsauer slammed France’s decision to choose GE over Siemens as the preferred buyer of Alstom’s energy assets, saying France had put national interests over European interests.

 

The French government has  20 months from the closing of the operations to acquire 20% of Alstom’s capital.

 

Julien Guillot, IEJ 3F

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