GE and Alstom have announced that GE has submitted a binding offer to acquire the Thermal, Renewables (Power) and Grid businesses of Alstom (ALO.PA) consisting of US$ 13.5 billion (€ 9.9 billion) enterprise value and US$ 3.4 billion (€ 2.5 billion) of net cash, totaling US$ 16.9 billion (€ 12.35 billion).
The Alstom board of directors has positively received GE’s offer and has appointed a committee of independent directors led by Jean-Martin Folz to review the transaction by June 2. If this review concludes positively, an exclusivity period beginning no later than June 2 will be granted and the next steps will include Works Councils consultation, Alstom shareholder approval in a shareholder meeting, and customary regulatory approvals. Bouygues S.A., a 29% non-controlling shareholder of Alstom, supports the transaction. Although the transaction involves the acquisition of Alstom’s Power and Grid businesses, GE’s offer, typical of a public company transaction, permits the board of Alstom to consider unsolicited alternative proposals for the acquisition of Alstom, or of the Power and Grid businesses. The deal is expected to close in 2015.
