French power equipment maker Alstom has approved US$17 billion offer made by General Electric to acquire its global power business after deliberating on two more such proposals made by Siemens and Mitsubishi. The Board of Directors of Alstom received, on June 20, an update to the offer from General Electric (GE) to acquire the power and grid businesses of Alstom. It also received a revised proposal from Siemens and Mitsubishi Heavy Industries.
Based on the works of the committee and financial and legal advisors, the Board of Directors has unanimously decided to issue a positive recommendation of the offer from GE. The scope of the proposed GE transaction includes the thermal power, renewable power and grid sectors, as well as corporate and shared services. Proceeds from the sale will be used mainly to expand Alstom’s transport business.