What makes Alstom so Valuable?

by / Tuesday, 29 April 2014 / Published in Smartgrid-CI Blog

Alstom’s value is going up with Siemens overbidding G.E’s offer. Siemens is ready to swap Alstom’s energy business with its transportation business and in so doing create two big companies in these fields. Siemens would also add to the table no less that €11B to acquire the energy business, about $15B. What makes Alstom so attractive? OK, Alstom is much smaller than its predators but the French company is a major player in several areas of the smart grid market. Greentechmedia reminds us today that Alstom is the world’s third biggest gas turbine manufacturer, the third biggest grid transmission equipment after Siemens and ABB. Alstom also does interesting work with Cisco in integrating multiple grid platforms.

On top of that, even though Alstom is not a major player in wind turbines, the company has recently completed the world’s biggest offshore wind turbine. Acquiring more wind turbine know-how cannot be a bad thing. According to the GWEC, installed wind power should triple globally by 2020.

Alstom also brings very good relationship with EDF (Electricité de France) which is one of the world’s top nuclear power plants owner. After decades of disappointed expectations, nuclear power is close to a major revival that could start with the potential purchase of $24B worth of equipment from Westinghouse by China. Finally, Alstom is part of the Swansea Bay tidal project; the biggest in the world so far.

No doubt, Alstom’s technology is well fitted for these promising markets.

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