GE-Alstom deal under the microscope once more

The European Commission is expected to announce a probe into the GE takeover of Alstom’s power equipment business next week.

Reuters reports that the $14bn deal will be subject to a fresh investigation, with insiders telling the news agency that the EU watchdog may have concerns that the deal could reduce competition, in which case it may demand remedies.
GE Alstom
“There is a strong possibility that the European Commission will open a phase two investigation although there is no final decision yet,” said one of the people who declined to be named because of the sensitivity of the matter.

Another source said the companies have not provided concessions to the EU competition authority.

While the Commission declined to comment, GE said it was cooperating fully.

“”We are cooperating fully with the European Commission throughout the competition review process. We believe our alliance with Alstom is good for customers, employees, and Europe. Our goal is to secure the required regulatory approvals and close the transaction by mid-2015,” the company said in an emailed statement to Power Engineering International.

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