The European Commission has given its approval to the formation of a joint venture between ABB and Alstom, and to the sale of Alstom’s heavy duty gas turbine business to GE. Regulatory clearance in the US is still outstanding.
The Commission decided that, although one important competitor was being eliminated, no dominant position was being created, as Siemens, GE, Mitsubishi Heavy Industries, Ansaldo and smaller competitors remained active. The Commission said that, given the consolidation that has already taken place, it would scrutinize very carefully any further consolidations.
The Commission concluded that the joint venture would not be able to behave independently of its competitors and customers for the following reasons: the presence of other turnkey gas plant providers, and the fact that there are other suppliers of components for turnkey gas plants, and thus no foreclosure of the access to components for architects/engineers.
ABB Alstom Power will comprise all of ABB’s Power Generation Segment, excluding its nuclear and distributed power activities. It will also comprise all of Alstom’s Energy Sector activities, excluding its heavy duty gas turbine business, which is being sold to GE.
