Alstom decided to agree with General Electrics: Alstom's board unanimously approved General Electrics (GE )'s proposal for the energy division.
The Alstom board met on Monday and unanimously approved GE's offer for the energy division. The company will now sell its energy activities and take G's signaling business, focusing on the transport sector by cooperating internationally with GE in the rail system sector.
GE 12,35 € million will acquire Alstom's global coal and gas turbine enterprises and form a joint venture 50: 50 in the network, renewable and nuclear turbine fields.
With this money, Alstom will pay off its debts, pay cash back to its shareholders, and 2,6 will invest € 3 million in GE and three 50: 50 joint ventures in the energy sector.
It will also use the money to invest in the Transportation Sector. Alstom will purchase 100% of GE's signaling business for a price in excess of € 800 million. GE's 1200 employee in the signaling business, and 2013 sales of € 400 million. Alstom will also enter into cooperation agreements with GE for its non-US activities, R & D activities and US funding, production and trading activities.
The deal with GE came after the French government agreed to purchase the company's 20 stake from its main shareholder Bouygues. In this way, the state can appoint two members to Alstom's board of directors.
On the other hand, Alstom Transport signed a Memorandum of Understanding with the Russian Railways. This Memorandum of Understanding includes technical consultancy services, infrastructure project management and modern infrastructure facilities design as well as quality assurance, information exchange and quality control services in construction works.