Fair trade regulator Competition Commission of India (CCI) has approved the acquisition of Alstom’s India assets by General Electric as part of global deal.
In a filing to the BSE today, Alstom said that the CCI in its meeting held on May 5 this year approved the acquisition of Alstom’s India assets by General Electric as part of the global deal.
General Electric had announced earlier that it will acquire thermal, renewable and grid businesses, as well as corporate and shared services (the energy transaction) of Alstom for a fixed and unchanged price representing an equity value of 12.35 billion euro and an enterprise value of 11.4 billion euro.
Under the terms of the updated offer, following completion of the energy transaction, Alstom and GE would establish joint ventures in Grid and Renewable Power.
In Grid, each company would hold a 50 per cent stake in a global business combining Alstom Grid and GE Digital Energy.
In Renewable, each company would hold a 50 per cent stake in Alstom?s Off-shore Wind and Hydro businesses.
Under the deal, Alstom and GE would create a 50/50 Global Nuclear and French Steam alliance, which would include the production and servicing of the ?Arabelle? steam turbine equipment for nuclear power plants, as well as Alstom’s steam turbine equipment and servicing for applications in France.
The French state would hold a preferred share giving it veto and other governance rights over issues relating to security and nuclear plant technology in France.
The investment by Alstom in these Energy related alliances represents euro 2.5 billion, assuming these companies are debt-free, cash-free. The terms of these alliances include usual shareholders agreements with standard governance and liquidity rights.