A consortium agreement was signed by the two partners in November 2009 for the purpose of this joint acquisition.
The consortium agreement sets out the transfer of the transmission business (about two thirds of the total) to Alstom and of the distribution business (about one third) to Schneider Electric.
The companies will also develop cooperation between the transmission and distribution businesses, via commercial and license agreements.
Patrick Kron, chairman and CEO of Alstom, said: “Through this acquisition, Alstom builds, in addition to power and transport businesses, a third sector constituting high voltage energy transmission business of the group.
“This sector will benefit from aggregation of all complementarities and means of the group, mainly of its international network expanded in 70 countries, its technological and industrial expertise and of existing liaisons between high voltage energy distribution and energy generation.”
Jean-Pascal Tricoire, president and CEO of Schneider Electric, said: “This consolidation reinforces considerably our offers in medium voltage and network automation. It will also strengthen Schneider Electric’s presence in new economies and access to utilities and electro-intensive customers, and enhance the group’s position at the centre of the smart grid technological revolution.”
