Alstom opt to drive down sale price to ensure GE acquisition

GE Alstom

Alstom is prepared to accept a sizeable hit on the sale of its power unit in a bid to ensure its acquisition by GE.

Reuters reports that the company is said to be ready to take a EUR300m ($333m) reduction in the price it will get for selling its power turbines unit to General Electric as a contribution to the US firm’s efforts to get antitrust clearance in Europe.
GE Alstom deal
“In order to support General Electric in its offering of a comprehensive set of remedies addressing the concern of the (European) Commission, Alstom’s board… would contribute financially to such remedy package through a reduction of 300 million from the original 12.35 euro billion purchase price,” the French engineering company said in a statement.

“The parties continue to have constructive discussions with the Commission regarding the transaction.”

On July 16, GE said it had offered unspecified concessions in an attempt to counter EU regulatory concerns about the deal, which was announced last year and would be its biggest ever acquisition.

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