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GE in energy and transport alliance with Alstom

Staff writer |
GE updated its offer to acquire the Power and Grid businesses of Alstom in connection with discussions with Alstom management and the French government. GE’s valuation for Alstom remains unchanged.

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GE chairman and CEO Jeff Immelt said: "Our discussions with the French government over the past seven weeks have been productive. As a result, we have reached agreements with Alstom’s management that will create an alliance between our companies in both spirit and practice. The alliance will retain and strengthen France’s presence in the energy business and reinforce Alstom Transport. It creates jobs, establishes headquarters decision-making in France and ensures that the Alstom name will endure.

"This proposed alliance also preserves the value of this deal for GE investors. Our synergies remain intact. It is immediately accretive to our earnings, furthers the transition of our portfolio towards industrial businesses, and broadens our product and service offerings for customers."

GE and Alstom will establish two 50/50 joint ventures to strengthen France’s and Alstom’s presence in energy and support its energy transition.

GE and Alstom will create a Global Nuclear and French Steam Alliance to assure security and growth of nuclear steam technology for France.

To further strengthen Alstom Transport, GE and Alstom have signed a memorandum of understanding to create a global alliance in Transportation.

GE has committed to create 1,000 new jobs in France over the next three years, focused in high-value areas such as manufacturing and engineering.

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