U.S. conglomerate General Electric (GE) has completed the EUR 9.7 billion (USD 10.7bn) purchase of Alstom’s power and grid businesses, GE’s largest ever industrial acquisition, following the regulatory approval of the deal in over 20 countries and regions including the EU, U.S., China, India, Japan and Brazil.
GE reached an agreement with Alstom in April 2014 to purchase Alstom’s power and grid businesses for EUR 12.35 billion, but the value of the deal was adjusted for the joint ventures in the areas of renewables, grid, and nuclear energy announced in June 2014, as well as due to changes in the deal structure, price adjustments for remedies, net cash at close, and the effects of currency.
The final amount includes working capital usage of approximately EUR 600 million in the month of October.
GE expects the deal to generate USD 0.05-0.08 of earnings per share in 2016 and USD 0.15-0.20 of earnings per share by 2018. The company is targeting USD 3 billion in cost synergies in year five and strong deal returns.
“The completion of the Alstom power and grid acquisition is another significant step in GE’s transformation,” said Jeff Immelt, chairman and CEO, GE.
“The complementary technology, global capability, installed base, and talent of Alstom will further our core industrial growth. We are open for business and ready to deliver one of the most comprehensive technology offerings in the energy sector for our customers.”