Siemens and Mitsubishi present $ 9.5 billion offer to Alstom
France, Levallois-Perret: Yesterday Siemens and Mitsubishi Heavy Industries (MHI) presented a joint offer to Alstom which included $ 9.5 billion in cash, challenging a bid by General Electric.
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France, Levallois-Perret: Yesterday Siemens and Mitsubishi Heavy Industries (MHI) presented a joint offer to Alstom which included $ 9.5 billion in cash, challenging a bid by General Electric.
According to the deal, Siemens offered to buy Alstom’s gas turbines business for $ 5.2 billion in cash, and MHI to buy stakes in Alstom power assets. These would be separate joint ventures. MHI would also give $ 4.2 billion in cash to Alstom and offer to take a stake of up to 10 % in the French firm from shareholder Bouygues, reports Fox Business.
“Alstom would remain an independent energy and transport player with a strong brand.” Said Siemens Chief Executive Joe Kaeser. “Its energy business would be strengthened through the partner MHI and we intend to explore opportunities with Alstom to create a European rail champion for the world market.”
Taking into account the value of the parts of the power businesses that would remain under Alstom’s control, this offer would be worth over $ 1.4 billion more than GE’s according to the sources.
Ahead of GE’s offer deadline on the 23rd June, French Finance Minister Michel Sapin said Alstom and the government would examine both offers and base their decision on that. Siemens CEO Kaeser and MHI’s chief Shunichi Miyanaga will present their plan to France’s lower house of parliament today.
Siemens said yesterday it would offer a three-year job guarantee for workers at the gas business in France and Germany and that the Alstom and MHI alliance would create over 1,000 jobs in France.
Source: Fox Business
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