The European Commission (EC) has approved General Electric’s (GE) €12.5 billion ($13.9 billion) acquisition of Alstom’s power and grid business, including its hydropower assets.
Total authorisations for the deal now stand at 20, paving the way for transaction close at the end of this year, reports suggest.
EC approval comes after GE agreed to divest parts of Alstom’s heavy-duty gas turbines business to Italy’s Ansaldo Energia – a move that was required as Europe’s highest anti-trust authority was concerned the original deal could decrease competition in the heavy-duty gas turbines segment across the European market.
The EC found that the renewables part of the transaction – which includes Alstom’s hydropower business – was ‘complementary’ and would be unlikely to cause competition issues.
Once the transaction is complete, Alstom said it intends to concentrate on its transport business.
