The European Union on Tuesday gave the OK for General Electric’s multibillion-dollar takeover of French company Alstom’s power assets.
The EU’s approval of the $13.4 billion deal comes with the condition that GE sell Alstom’s gas turbine business to Italy’s Ansaldo.
“Our analysis showed that without this divestiture, Alstom turbines risked disappearing from the market,” said Margrethe Vestager, the EU’s competition commissioner. “As a result, choice would have gone down and prices up.”
The European Commission spent months investigating the effects of the acquisition, which Vestager says will not harm effective competition on European markets, thanks to GE's agreement to sell the turbine business.
GE acquires all of Alstom’s other power assets, including nuclear, coal-fired, wind and hydro power plants as well as electricity transmission equipment.