GE proposes concessions to gain EU approval for Alstom deal

19 July 2015 (Last Updated July 19th, 2015 18:30)

US-based General Electric (GE) has stated its committment to pursuing the proposed $17bn acquisition of French Alstom's power business and has offered concessions to address the European Union's regulatory concerns about the deal.

US-based General Electric (GE) has stated its committment to pursuing the proposed $17bn acquisition of French Alstom’s power business and has offered concessions to address the European Union’s regulatory concerns about the deal.

The proposal was submitted to the commission on Thursday; however, further details have not been disclosed.

The EU was expected to complete its analysis of the deal by 21 August, but this is likely to be extended to mid-September.

General Electric was quoted by Reuters as saying: "GE confirms it has submitted remedies to the European Commission in relation to the GE-Alstom transaction.

"These remedies address the concerns of the commission and at the same time preserve the economic and strategic value of the deal."

"These remedies address the concerns of the commission and at the same time preserve the economic and strategic value of the deal."

EU regulators are concerned that the acquisition, which was announced mroe than a year ago, is likely to affect the price of large gas turbines in Europe, causing them to rise significantly.

In June 2014, Alstom’s board of directors recommended GE’s offer to acquire the Power and Grid businesses.

GE chairman and CEO Jeff Immelt said at the time: "We will now move to the next phase of the Alstom alliance.

"We look forward to working with the Alstom team to make a globally competitive power and grid enterprise. We also look forward to working with the French Government, employees and shareholders of Alstom. As we have said, this is good for France, GE and Alstom."

Negotiations about the remedies are set to continue, with the two parties expected to reach a decision and close the deal by the end of the year, according to a source from GE.

The EU previously rejected GE’s proposed $42bn takeover of Honeywell International in 2001 although it had been approved by US authorities.