Brussels, 07/07/2004 (Agence Europe) - Before the general meeting of Alstom shareholders meets up on Friday, the Commission gave its approval to an agreement concluded at the end of May by Nikolas Sarkozy, French minister for the economy and Mario Monti European Commissioner of Competition on aid for restructuring (EUROPE 27 may). The aid is subject to strict conditions, including divestments and measures to open up the market decision also provides that Alstom must, within four years, enter into one or more long-term industrial partnerships in significant sectors in which it operates. Wednesday's decision outlines the Commission's demands on the demands. The decision provides compensatory measures with new divestments involve some €1.6 billion and include industrial boilers, “Transport” operations in Australia and New Zealand and freight locomotives in Spain, plus €800 million in other business activities to be specified at a later stage.
The terms of the industrial partnerships imposed on the group have not been made public but they are "clearly defined between the Commission and France" indicated Commissioner Monti's spokesperson. He also explained that a partnership was a "structural and strategic arrangement" for the long term and not a company created on an ad hoc basis for responding to a call for tender. The first kind of partnership will be in the energy sector and could be an example of how further partnerships can be developed. This involves a joint venture with parity stakes in the hydraulic turbine sector in which Alstom is seeking an agreement but has so far not provided any other details. The spokesperson refused to say whether France and the Commission had mentioned whether a partnership would mean Alstom losing control of related activities. As well as the sales that have been indicated, partnerships are also expected in the transport sector where any acquisition over four years is almost totally excluded. The Commission also obtained commitment from France to open op the railway materials market through measures facilitating public procurement in this area.