PARIS (The Deal) -- France's Alstom has agreed to sell its power unit to General Electric (GE) for an enterprise value of 11.4 billion ($15.5 billion), before returning cash to the buyer in exchange for stakes in a handful of joint ventures and GE's train signaling unit.
The decision ends months of wrangling that GE pitted against a partnership of Siemens and Mitsubishi Heavy Industries and, at times, the French state. The French government on Friday gave its blessing to a revised GE offer after rejecting two earlier bids for failing to protect the country's strategic interests and Alstom's French workers.
Under the terms of the deal, GE will pay an initial 12.35 billion, excluding adjustments for cash and debt, for Alstom's generator manufacturing unit, renewable power operations and power grid operations. Paris-based Alstom will then pay 2.5 billion to re-acquire 50% stakes three joint ventures covering the the grid, renewable energy, and nuclear and steam turbine operations.
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