The French government has formally given itself the power to block foreign takeovers on strategic grounds as it seeks to sway the outcome of a battle between General Electric and Siemens for Alstom, one of France’s industrial crown jewels.
The new authority, promulgated late Wednesday as an update to a 2005 law, in effect requires that a foreign investor planning a significant push into any of six areas deemed to be of strategic concern — energy, transportation, water, health, electronic communications or defense — first obtain the economy minister’s approval.
The new authority, promulgated late Wednesday as an update to a 2005 law, in effect requires that a foreign investor planning a significant push into any of six areas deemed to be of strategic concern — energy, transportation, water, health, electronic communications or defense — first obtain the economy minister’s approval.
The law will allow the government “to ensure that its legitimate objectives are fully taken into account by foreign investors,” Arnaud Montebourg, the economy minister. Mr. Montebourg has said that he does not have a preference for G.E. or Siemens but that any deal for Alstom must safeguard jobs and technology, keep some decision-making in France as a matter of “economic sovereignty” and maintain control over Alstom’s nuclear power operations. He noted Thursday that he had written a letter last week to Jeffrey R. Immelt, G.E.’s chairman and chief executive, to say, “We’re open to an alliance, not a breakup of Alstom or a loss of a control.”
German engineering company Siemens and its Japanese peer Mitsubishi Heavy plan to make a joint offer for large chunks of Alstom’s energy business on Monday, entering a bidding war with General Electric for one of France’s industrial jewels, according to people familiar with the companies’ plans.
As part of the offer, Mitsubishi aims to buy up to 10% of Alstom from Bouygues, which currently holds 29.3% of the company, two of the people said.
French government planned to purchase a 20 percent stake in Alstom SA (ALO), the French manufacturer at the heart of a takeover battle between Fairfield, Connecticut-based General Electric Co. (GE) and Siemens AG of Munich, Montebourg told a press conference hours before kick-off on June 20. GE would gain energy assets from Alstom for $17 billion, while a competing group led by Siemens walked away empty-handed. http://www.bloomberg.com/news/2014-06-24/immelt-s-alstom-push-crowned-by-promise-under-chandelier.html
GE reorganizes after acquisition of Alstom's energy assets Mark Hutchinson, General Electric's president and CEO for greater China, has been appointed to integrate French firm Alstom's energy business. Rachel Duan, president and CEO of GE Healthcare China, will succeed Hutchinson. Hutchinson's "deep knowledge of GE and experience in global markets make him the right person for this important role," said John Rice, vice chairman, president and CEO of GE Global Growth and Operations
GE has new reactor ready to certify After nine years before federal regulators, General Electric has "the world's most technologically advanced reactor" ready for certification.
That description of the ESBWR, or economic simplified boiling water reactor, is from GE Hitachi chief executive Caroline Reda, who points out Nuclear Regulatory Commission certification paves "the way for the reactor's construction in the U.S."
The NRC is reviewing two license applications referencing the ESBWR design. Detroit Edison is seeking a license for Fermi Unit 3 in Monroe County, Mich., and Dominion Virginia Power is seeking a license for North Anna Unit 3 in Louisa County, Va.
In April 2013, GE Hitachi agreed to guide Dominion through the process of applying for a combined operating license for a reactor engineered for the utility's site a few miles from the epicenter of the earthquake that shook the East Coast three years ago.
General Electric Co's (GE.N) quarterly industrial earnings rose 9 percent, helped by cost cuts that expanded profit margins, as the U.S. conglomerate banks on manufacturing of jet engines, turbines and other big-ticket products as it unloads most of its finance business.
Revenue fell 1 percent in its industrial segments, hurt by a $950 million hit from the stronger dollar, GE said on Friday. Stripping out the currency drag and the impact from deals, sales rose 3 percent.
The stronger dollar is expected to weigh on U.S. industrial companies, whose revenues are hurt when foreign sales are translated back into the U.S. currency.
Overall, GE posted a first-quarter net loss of $13.6 billion, or $1.35 per share. Results were weighed down by about $16 billion in charges tied to its exit of GE Capital assets. The company disclosed last week it was shedding much of its finance business.
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