THE European Commission (EC) and US Department of Justice have finally authorised General Electric's (GE) €12.4bn acquisition of Alstom's power business, which will leave Alstom as a company solely focused on transport.
The EC had expressed concerns over the level of competition in the European marketplace for heavy-duty gas turbines following the takeover, which it argued could potentially lead to higher electricity prices. To allay these fears GE has agreed to sell some of Alstom's power assets to Ansaldo, Italy, to strengthen its position in the market.
Alstom says the deal concludes constructive discussions in recent months between the companies and authorities and will now allow it to focus on an ambitious growth strategy in its transport business, which it will bolster through the acquisition of GE's railway signalling business as part of the deal.
In May 2015, Alstom acquired 100% of Signalling Solutions Ltd (SSL), in the United Kingdom which took Alstom Transport’s workforce in the United Kingdom and Ireland to 2,500. The company will continue to trade as SSL for the foreseeable future.
Terence Watson, President of Alstom UK commented; “Alstom will use this fantastic opportunity to strengthen its activities in UK- which include rolling stock, infrastructure, electrification and signalling – and contribute to build a better railway. The company is looking forward to further collaborating with Network Rail, Crossrail, HS2 and the British supply chain in delivering the state-of-the-art signalling technologies that will deliver the railway’s digital future,”
In August 2015 Alstom and JV partner Taylor Woodrow completed work on the Nottingham Tram extension in the UK, more than doubling the existing tram line to 32km which is able to cater for up to 20 million passenger journeys a year; and in the last week Alstom’s Metropolis for Kochi (Southwest India) – design was unveiled for the first time.
The new metro will run on the Kochi’s new fully elevated metro rail network. Alstom - which was awarded the supply of 25 Metropolis trainsets in 2014 and 2 others1 during the course of 2015 - is the main supplier of the city’s new metro network.