GE faces Commission obstacle to Alstom deal in June

GE’s acquisition of Alstom is to face another test as early next month when the European Commission puts forward a statement of objections over its $13.9 billion bid.

The deal risks being blocked unless GE offers adequate remedies, insiders have disclosed to Bloomberg.

GE wants to stick to its original merger terms as it says competition rules are not being contravened by the deal.
GE Alstom
“We have a constructive dialog with the commission and we continue to work toward a positive outcome,” Seth Martin, a GE spokesman, said by e-mail.

The timing of the statement of objections would give GE and Alstom, based in the Paris suburb of Levallois-Perret, at least two months to reach a compromise with the EU ahead of its August 6th deadline to rule on the deal.

While the companies will seek to address EU concerns relating to the sale and servicing of heavy-duty gas turbines, GE has said it disagrees with the regulators’ initial assessment and the company has not indicated it plans to sell any assets to win clearance for the deal.

The EU has previously said the purchase may leave only Siemens AG as GE’s main rival in Europe, probably stifling innovation in the region and leading to price rises.

 



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