General Electric has just over a week to offer concessions and head off E.U. regulatory concerns about its $13.7bn bid for Alstom’s power unit.
That was the word from an insider who spoke to Bloomberg this week. The European Commission warned that the deal could hurt competition as it would result in just two gas turbine companies in Europe – GE and German rival Siemens AG, however the US company wants to persuade Brussels with regard to the overlooked prospect of Chinese competition in the market.|
It is not clear if GE managed to sway the EU competition enforcer at a closed-door hearing last week despite arguing that the merged company’s market power would not be as dominant as estimated by the Commission.
“The deadline for remedies is July 16,” said the source, who declined to be named because the date is not public knowledge. The Commission is scheduled to decide by August 21st whether to clear the deal.
GE Chief Executive Jeff Immelt has said the company is ready to offload intellectual property rights to some of Alstom’s assets but industry players suggest that it may have to do more, such as selling assets.
Meanwhile reports suggest Siemens may still be interested in acquiring the unit should it become available again, according to an unnamed senior management source who had spoken to Reuters.
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