Mergers: Commission clears GE's acquisition of Alstom's power generation and transmission assets, subject to conditions

EU News 240/2015

Strasbourg, 8 September 2015
IP/15/5606

Following an in-depth review, the Commission has approved the acquisition of Alstom's energy businesses by General Electric subject to divestment of central parts of Alstom's heavy duty gas turbines business to Ansaldo.

Following an in-depth review, the Commission has approved under the EU Merger Regulation the proposed acquisition of the energy businesses of Alstom of France by US-based General Electric ('GE').

The approval is conditional upon the divestiture of central parts of Alstom's heavy duty gas turbines business to Ansaldo of Italy. Heavy duty gas turbines are mainly used in gas-fired power plants. The Commission had concerns that the transaction would have eliminated one of the main global competitors of GE in the heavy duty gas turbines market, where GE is the world's largest manufacturer and Alstom is the number three or four player globally. This would have led to less innovation and higher prices in a market for a technology vital to meeting climate change goals. The commitments offered by GE address these concerns.

Concerning the other businesses that are part of the transaction, namely the thermal power generation businesses (other than gas), grid and renewables, the Commission did not identify any competition concerns essentially because the activities of the two companies are complementary and do not overlap.

Source and additional information:
http://europa.eu/rapid/press-release_IP-15-5606_en.htm?locale=en

File Photo: Margrethe Vestager, Member of the EC in charge of Competition, Date: 16/06/2015 Reference: P-028599/00-01 Location: Paris - Ministry for Economy, Finance and Industry (C)EU, 2015 URL

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