FX.co ★ France preferred General Electric’s offer over Siemens and Mitsubishi

Alstom, the French industrial group, took a $16.9 billion offer by American General Electric to buy most of its energy business. Previously, France’s Economy Minister Arnaud Montenbourg stated that the takeover deal will be completed in case some part of Alstom shares is state-owned. That is necessary to defend national interests of France, he said.
Nevertheless, Jeffrey Immelt, the head of General Electric managed to assure the politician that he should make a concession on that matter. Besides, the deal was approved by the regulators and trade union of Alstom. France favored €12.35-billion bid for Alstom. GE will retain control over Alstom’s thermal-power, renewable energy, and electricity-grid businesses.
After closing that part of the deal, GE and Alstom are supposed to establish several joint ventures. GE CEO gave a promise to create 1,000 additional workplaces in France. The document was forwarded to the French authorities as a way to convince them while making a decision. To be sure, GE was chosen over a rival joint offer worth $19.2 billion by Germany’s Siemens and Japan’s Mitsubishi.