GE Wins Alstom Deal
After fierce battle against Siemens and Mitsubishi, GE wins but the deal is complex and the American giant will have to partner with the French government.
Today is the deadline set by GE for his proposition and the last hurdle of this deal seems to be solved. The French government will purchase 20% of Bouygues’ share in Alstom’s equity. Cash strapped Bouygues expected to sell all of the equity it owned (29.4% ) but this outcome is better than what was offered by the Siemens-Mitsubishi counterproposal presented on Wednesday.
GE managed to navigate the complexity of this deal in taking into account Bouygues’ needs for cash and the French government requirements for protecting critical nuclear and wind turbine technologies and for protecting jobs.
GE’s CEO Jeff Immelt was in the front line and met French President François Hollande three times during the negotiation. GE’s victory is no surprise since Alstom’s board supported GE’s proposal from the start and officially accepted it during the week end.
The final deal is quite complex although less complex than the initial Siemens-Mitsubishi proposition.
However, Siemens has not conceded defeat yet and is “standing by in case the deal collapses”.