Brussels, 28/07/2015 (Agence Europe) - The French company Alstom has agreed to knock €300 million off the pricetag for the purchase of its 'energy' arm to the American giant General Electric, “in order to support GE in its proposal of a complete raft of measures designed to respond to the reservations expressed by the European Commission”, Alstom stated in a press release on Monday 27 July.
General Electric has explained that the change in the selling price would apply only if the Commission agreed to its proposed measures to remedy the concerns the institution has expressed about the impact of the merger in terms of competition. According to AFP, the American giant has proposed to sell certain assets to avoid a veto from the European institution.
Having opened an in-depth investigation into the merger, the Commission has concerns that the operation will lead to competition problems on the market for the sale and maintenance of heavy duty gas turbines, which are used principally in gas-fired power stations (see EUROPE 11336 and 11313). The HDGT market has just four competitors active internationally: General Electric, Alstom, Siemens and Mitsubishi. It has given itself until 11 September to reach a decision. (Elodie Lamer)