While General Electric (GE) waits for the French government to approve its bid for Alstom’s power and grid divisions, other companies are using the time to consider offers of their own.
On June 11, Siemens AG and Mitsubishi Heavy Industries (MHI) announced that they are joining forces to evaluate a potential proposal for Alstom. The two companies said they would decide on the submission of a proposal by June 16.
“MHI has been invited by Siemens to join forces and we firmly believe that we can substantially contribute to a partnership solution for Alstom which will create value for all parties involved, including the country of France,” said Shunishi Miyanaga, president and CEO of MHI.
Siemens President and CEO Joe Kaeser said, “I appreciate MHI’s commitment to join our efforts and I do look forward to working together with MHI to create a long-term oriented solution for Alstom, MHI, and Siemens.”
Alstom is one of France’s most important companies. Among other products, it manufactures the famous TGV high-speed trains, and its energy division serves markets in thermal, hydro, coal, gas, nuclear, wind, and other renewables.
On April 30, GE announced its all-cash offer to acquire the power and grid businesses of Alstom sending shockwaves through the industry and concern through the French government as it considered the job implications. The deal consists of $13.5 billion in enterprise value and $3.4 billion in net cash.
—Aaron Larson, associate editor (@AaronL_Power, @POWERmagazine)