The effect
Executive Summary
The recent acquisition of French energy company Alstom by General Electric has made a lot of headlines in the world recently. This is one of the largest acquisitions by the General Electric and involved a lot of complexities. The Alstom’s board of directors was ready to cut the deal with General Electric but French government has made this deal as the national pride and tried to interfere. They opposed this deal on the ground of loss of jobs in France but in reality the French government didn’t want a Unites States of America’s company to acquire a major power company of France. They have made it a pride issue. Arnaud Montebourg, economy and industry minister of France even made changes in the law so that government can veto the deal. Siemens, a German company which is in the power business in collaboration with Hitachi and Mitsubishi Heavy Industries (MHI) made a counter offer to the Alstom Company. They got the support of the French government. As this deal was very important and critical for the General Electric, they revised their bid and made a new offer to the Alstom,’s board of director. Jeffrey R. Immelt, CEO of General Electric, personally call French President, Francois Horellande to give assurance that no jobs will be lost with the finalization of this deal. French government was also acquired 20% stakes in Alstom. Thus French government becomes a member of Alstom’s heavy duty gas turbine business. As a part of this deal General Electric’s and Alstom 's also form a 50:50 joint venture in renewable and electric grid business, and a 50:50 joint venture in Alstom 's steam turbine and nuclear power business. General Electric also announced to sell its rail signaling business to Alstom. Alstom wants to focus on railway signaling business so this provided an excellent opportunity for the Alstom to pursue its interest by leveraging on the capabilities it acquired through General Electric’s rail signaling business.
.In this report we have
The recent acquisition of French energy company Alstom by General Electric has made a lot of headlines in the world recently. This is one of the largest acquisitions by the General Electric and involved a lot of complexities. The Alstom’s board of directors was ready to cut the deal with General Electric but French government has made this deal as the national pride and tried to interfere. They opposed this deal on the ground of loss of jobs in France but in reality the French government didn’t want a Unites States of America’s company to acquire a major power company of France. They have made it a pride issue. Arnaud Montebourg, economy and industry minister of France even made changes in the law so that government can veto the deal. Siemens, a German company which is in the power business in collaboration with Hitachi and Mitsubishi Heavy Industries (MHI) made a counter offer to the Alstom Company. They got the support of the French government. As this deal was very important and critical for the General Electric, they revised their bid and made a new offer to the Alstom,’s board of director. Jeffrey R. Immelt, CEO of General Electric, personally call French President, Francois Horellande to give assurance that no jobs will be lost with the finalization of this deal. French government was also acquired 20% stakes in Alstom. Thus French government becomes a member of Alstom’s heavy duty gas turbine business. As a part of this deal General Electric’s and Alstom 's also form a 50:50 joint venture in renewable and electric grid business, and a 50:50 joint venture in Alstom 's steam turbine and nuclear power business. General Electric also announced to sell its rail signaling business to Alstom. Alstom wants to focus on railway signaling business so this provided an excellent opportunity for the Alstom to pursue its interest by leveraging on the capabilities it acquired through General Electric’s rail signaling business.
.In this report we have
References: 1. (n.d.). Retrieved August 6, 2014, from Alstom: http://www.alstom.com/press-centre/1999/3/ALSTOM-sells-its-heavy-duty-gas-turbine-business-to-General-Electric-19990323/ 2. (n.d.). Retrieved from http://www.forbes.com/sites/greatspeculations/2014/05/07/alstom-acquisition-will-strenghten-ges-power-business-but-roadblocks-exist-in-deal-completion/ 3. (n.d.). Retrieved from http://online.wsj.com/articles/ges-alstom-deal-shattered-frances-dream-1403728034 4. (n.d.). Retrieved from http://www.bloomberg.com/news/2014-04-24/ge-alstom-tests-immelt-legacy-after-welch-s-bundle-of-eu-trouble.html 5. (n.d.). Retrieved from http://www.renewableenergyworld.com/rea/news/article/2014/04/why-is-alstom-such-a-hot-commodity 6. Alstom. (n.d.). Retrieved from Alstom: www.Alstom.com/history 7. General Electric. (n.d.). Retrieved from General Electric: www.ge.com/history