GE Bids to Acquire Alstom’s Energy Units for $13.5 Billion
GE – GE announced today that it made a binding offer to acquire the thermal power, renewable energy and electricity grid businesses of the French engineering conglomerate Alstom for $13.5 billion in cash.
This is not the first time the two companies meet. In fact, both GE and Alstom grew out of common roots.
In 1892, Thomas Edison’s Edison General Electric Company merged with Elihu Thomson’s Thomson-Houston Electric Company to form GE. Thomson-Houston’s co-founder Charles A. Coffin became GE’s first chief executive officer and president.
In 1928, Thomson-Houston’s French subsidiary combined with France’s Sociéte Alsacienne de Constructions Mécaniques to create Alstom. The company developed into a major builder of power plant technology, including gas turbines built around technology licensed from GE.
In 1999, GE acquired Alstom’s heavy duty gas turbines business and the two companies have remained close. Their facilities in the northern French city of Belfort stand next to each other, divided only by a road and a fence, and their top executives live in the same neighborhoods.
In 2011, GE also bought Alstom’s former power conversion business, which became GE Power Conversion. The unit is now developing next-generation energy storage and power systems for a broad range of industries including oil and gas, mining, renewables and shipping.
Forty years ago, GE formed an aviation joint-venture called CFM International with France’s Snecma (Safran). Since then, CFM has delivered some 26,000 jet engines to 530 operators. CFM has more than 6,000 orders valued at $78 billion for its latest engine, the LEAP, which will enter service in 2016. more> http://tinyurl.com/ohd2w82