General Electric wrapped up a deal worth almost $11 billion to acquire the energy assets of French company Alstom on Monday and, in turn, formed the newly branded GE Power.
With the acquisition, GE aims to partner its own power generation technologies, services and expertise with the technology and geography of Alston to provide “total power plant and life cycle solutions that can support equipment from multiple suppliers.” GE paid a reported 9.7 billion euros, a little more than $10.6 billion.
“The completion of the Alstom power and grid acquisition is another significant step in GE’s transformation,” chairman and CEO Jeff Immelt said in a statement. “The complementary technology, global capability, installed base, and talent of Alstom will further our core industrial growth.”
The deal received approval from almost two dozen countries and regions, with anti-trust regulators in the United States and Europe forcing GE to sell off some of its maintenance assets to keep it from dominating the gas turbine market.
GE Power will encompass more than 65,000 employees in more than 150 countries, with an estimated revenue of $30 billion, according to a company statement.
“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 Steve Bolze, who will serve as the president and CEO of GE Power.
GE originally reached an agreement to purchase Alstom’s power and grid businesses back in April 2014 after a bidding war with Siemens.
GE also announced it had sold a rail signaling business to Alstom for $800 million — part of the company’s efforts to focus more directly on its energy portfolio.