Alstom sticks with General Electric bid
France, Levallois-Perret: Alstom has apparently decided to choose General Electric (GE) bid over the others.
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France, Levallois-Perret: Alstom has apparently decided to choose General Electric (GE) bid over the others.
According to Barron’s, there have been some significant changes to the deal where GE will have 100 % ownership of the global Gas and the Steam business outside of France with sales of approximately $ 11billion.
50/50 JVs will be formed for: 1) Grid with $ 6.5 billion sales, comprising Alstom’s T&D and GE’s Digital Energy businesses, 2) Renewables with $ 2 billion sales, comprising Alstom’s offshore wind and hydro businesses, and 3) Global Nuclear and French Steam with $ 1.7 billion of sales, comprising the Global Nuclear and French Steam operations, with the French government holding a preferred share related to security and nuclear plant technology.
GE is still paying $ 13.5 billion net of $ 3.4 billion of cash acquired. Alstom is paying $ 3.5 billion for its 50 % stakes in the three JVs which GE has highlighted is capitalised at a higher EBITDA multiple than the 7.9x it is paying, meaning that GE’s net cash outlay for the Energy transaction is $ 10 billion.
GE is also selling its rail signaling business to Alstom with revenue of $ 500 million for approximately $ 825 million. The company expects the deal to be accretive in one year.
Source: Barron’s
Image: Matt H Wade (Wikimedia Commons)
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