The deal between Alstom and General Electric has finally been confirmed following a summer of rumour and soft announcements.
Under the arrangement closed today, Alstom has sold its energy activities – power generation and grids – to the American giant General Electric for €12.4 billion.
At the same time, and using the proceeds of this deal, Alstom has acquired GE’s railway signalling activities for €700 million.
Some of the cash generated will go back to shareholders, while Alstom will also reinvest in three joint ventures with GE.
These deals mean that Alstom has become solely focussed on rail transport.
Patrick Kron, chairman and chief executive of Alstom, said: “Today represents a major milestone in Alstom’s history.
“We managed to secure a win-win deal with General Electric, which protects the interests of employees and customers in the Energy businesses, while reinforcing Alstom’s positioning in the transport industry.
“Alstom today holds leadership positions on a globally growing rail market and will rely on a solid financial base to support its growth strategy.”
Alstom has recently won significant awards for metros in Sydney, Kochi, Riyadh, Paris; for signalling solutions for the Toronto greater area and Denmark; tram systems for Rio de Janeiro, Lusail and Sydney and suburban trains for South Africa. Most of these projects include long term maintenance contracts.
