The EU has given formal clearance for the the sale of Alstom's small gas turbines business to Siemens AG.
Following clearance from the European Commission’s merger regulation office Alstom has completed the sale of its small gas turbines business to Siemens AG. The enterprise value of the transaction is r575 m, with net proceeds to Alstom of approximately r525 m. The EU’s decision allowed ownership of the business to transfer to Siemens with immediate effect.
This is the first of two widely reported deals with Siemens which has elected to delay integration of the small gas turbine business with its own businesses until formal merger clearance has been obtained from the EU in relation to all the industrial turbines businesses. Pending clearance, the medium gas turbines and industrial steam turbines businesses to be acquired by Siemens will continue to be owned and managed by Alstom.