EU: Alstom signs US$3b agreement with GE to exit joint ventures

French manufacturing group Alstom said on Thursday, May 10, it had signed an agreement with General Electric to exit three joint ventures in return for a payment of €2.6 billion (US$3.1 billion), reported Bloomberg.

Alstom said Thursday that it will exercise its options to exit the renewable energy, grid and nuclear businesses that were created as part of the original US$10 billion deal, which gave GE control of the French company’s gas-turbine operations. The transfer to GE of the joint-venture assets will occur on October 2, according to a statement.

Under the terms of the agreement with GE, Alstom said it will follow through with its right to exit the renewable-energy and grid ventures during the “exercise period” between September 4 and September 10. Doing so will trigger GE’s option to buy Alstom’s stake in the nuclear business, according to the statement.

The changes won’t affect the day-to-day operations of the ventures since GE already has control, the US company said in a separate emailed statement.

Full Content: Bloomberg

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