After two months of negotiation, General Electric and Alstom have reached agreement on their proposed alliance. The deal will create three joint ventures in the energy sector, one of which will be dedicated to renewable energy.
Alstom keeps a grip on renewable energy. The agreement with General Electricannounced on Friday 20 June allows Alstom to re-concentrate its efforts in the transport sector, and also anticipates the creation of three joint ventures in strategic energy sectors.
These will incorporate the French company’s existing assets in nuclear engineering, intelligent networks, and the renewable energies. The three joint ventures’ head office, in which both groups will be equally represented, will remain in France.
2.5 billion euros for joint ventures
Alstom has already invested in marine and offshore wind turbines, and will remain a major player in the sector. Its Haliade 150 turbines, to be produced in factories in Saint-Nazaire and Cherbourg, will outfit three of the six offshore wind farms planned for the French coast.
More broadly, the deal cedes a large part of Alstom’s energy business to General Electric for 12.35 billion euros. This sum will allow Alstom to strengthen its transport division and to invest 2.5 billion euros in the three energy joint ventures. The French government, which has been heavily involved in the negotiations, moves to take a 20% capital share in Alstom.