General Electric (NYSE:GE) on Monday announced the completion of its $10.6 billion acquisition of Alstom Power, which joins GE Power & Water to form GE Power.
The transaction -- the largest industrial acquisition in GE's history -- received regulatory approval in more than 20 countries and regions, including the European Union, U.S., China, India, Japan and Brazil.
In 2014, GE and Alstom reached a deal for the sale of Alstom's power and grid businesses for about $13.6 billion. Ultimately, approval from the EU required Alstom sell its gas turbine business to another European company, therefore changes in the deal structure saw the transaction close for about $10.6 billion.
"The completion of the Alstom power and grid acquisition is another significant step in GE's transformation," said Jeff Immelt, GE chairman and CEO. "The complementary technology, global capability, installed base and talent of Alstom will further our core industrial growth. We are open for business and ready to deliver one of the most comprehensive technology offerings in the energy sector for our customers."
Steve Bolze will serve as president and chief executive officer of the Schenectady-based business, leading more than 65,000 employees in more than 150 countries with a $30 billion estimated revenue.
“We now offer utility and industrial power plant operators even more complete, customized ‘one-stop shop’ solutions – not just for developing new stations but also optimized life cycle support for existing facilities to support local energy security,” said Bolze. “Our portfolio of technologies include(s) the world’s largest and most efficient gas turbine – the HA, full power plant components, boilers, steam turbines, reciprocating engines and more. Being a digital industrial business, we also offer digital and software solutions, specifically our Digital Power Plant, which helps our customers increase output, improve efficiency, lower operating costs, improve integration of renewable energy and reduce unplanned downtime."
In a media conference call Monday afternoon, Bolze called it a very exciting day for GE and for the Alstom team.
"We're all focused on providing affordable, reliable, sustainable power for every person on the planet, and our technology today -- across Alstom and GE coming together as GE Power -- generates a third of the world's electricity," said Bolze.
According to GE, four current projects will immediately benefit from the merger of GE and Alstom.
- PSEG Sewaren (New Jersey combined-cycle power plant): GE 7HA gas turbine and Alstom heat recovery steam generator (HRSG)
- Punjab Pakistan Bhikki (Pakistan combined-cycle power plant): Two GE 9HA gas turbines and Alstom steam turbine
- Exelon Power Plants (Texas power projects): Four GE 7HA gas turbines and four Alstom HRSGs
- Chempark (Leverkusen, Germany combined heat and power project): GE 9HA gas turbine
GE and Alstom are currently preferred bidders for a combined-cycle project in Asia that would employ two GE 7HA gas turbines, two Alstom HRSGs and one Alstom steam generator. Alstom is the preferred bidder for Arabelle steam turbines in two U.K. nuclear reactors and for boilers, steam turbines and generators for a clean coal project in the Middle East.
Alstom has also successfully delivered India's first 800-kV High Voltage Direct Current (HVDC) power transformer for the Champa-Kurukshetra project.
GE Power’s six businesses and leadership are as follows:
- Power Services, headquartered in Baden, Switzerland and led by Paul McElhinney;
- Gas Power Systems, headquartered in Schenectady and led by Joe Mantrangelo;
- Steam Power Systems, headquartered in Baden, Switzerland and led by Andreas Lusch;
- Distributed Power, headquartered in Henbach, Austria and led by Lorraine Bolsinger;
- GE Hitachi Nuclear Energy, headquartered in Wilmington, North Carolina and led by Jay Wileman, succeeding Caroline Reda who will now head Power Services’ North American region; and
- Water & Process Technologies, headquartered in Trevose, Pennsylvania and led by Heiner Markhoff.