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GE likely to win EU approval for $14bn Alstom deal

BRUSSELS, August 15, 2015

General Electric is expected to secure approval from European Union antitrust regulators for its proposed €12.4 billion ($13.8 billion) deal to buy French peer Alstom's power business, two people familiar with the matter said.

The green light from the European Commission will come 14 years after it rejected General Electric's (GE) attempt at a $42 billion takeover of Honeywell International, despite clearance by US authorities.

The US conglomerate, which offered concessions to head off the commission's worries about the company's largest ever acquisition, improved its package last week.

"GE is likely to get approval," one of the sources said.

The second source said GE had offered to divest some manufacturing and services activities and research and development units around the world, including a facility in Switzerland and Alstom's Power Systems Manufacturing operation.

The people said Italian company Ansaldo Energia was seen as the preferred buyer for the assets.

Commission spokesman Ricardo Cardoso declined to comment.

GE spokesman Jim Healy said: "We submitted a remedy package that addresses the Commission's concerns and preserves the economic rationale of the deal."

An Alstom spokesperson was not immediately available for comment.-Reuters

Tags: GE | Alstom | Antitrust |

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