All regulatory approvals have been obtained for the merger of ABB and Alstom, and the deal was formally closed on 30 June, 1999.
ABB received a payment of $1.5 billion from Alstom to reach a 50/50 arrangement, compensating for the difference in size of the contributed businesses.
ABB Alstom Power is a Dutch-incorporated company, and it will be initially headquartered in Brussels. Claude Darmon will be the first president and CEO of the company. Also on the Management Board are Alexis Fries, Nick Salmon, and Peer-Hakon Jensen. The Supervisory Board will consist of the following 6 members: Göran Lindahl, Pierre Bilger, James Cronin, François Newey, Renato Fassbind, and Armin Meyer.
ABB Alstom expects to make savings of 500-600 million euros per year within the next four years. Additionally, in 1999/00, ABB Alstom will record a capital gain of 550 million euro from the sale of Alstom’s heavy duty gas turbine business to GE.