Alstom not worried about possible EC objection to GE deal

France’s Alstom (EPA:ALO) said today it will continue to defend General Electric’s (NYSE:GE) planned acquisition of its power businesses and the positive impacts the deal would have on Europe.

The French engineering group published a press release on Friday to stress that a possible “statement of objections” by the European Commission (EC) as part of the investigation of the agreed transaction is a typical move in a phase II merger case. Alstom’s clarification comes after informed people told Reuters on Thursday that the EC was preparing to ask GE for more remedies.

GE signed a definitive deal in November 2014 to buy the French group’s thermal, renewables and grid operations for some EUR-12.35-billion (USD 13.8bn). The agreement also envisages the creation of 50/50 joint ventures between the two companies, one of which will focus on offshore wind and hydropower.

According to Reuters’ sources, GE will need to work harder in order to convince the EU antitrust watchdog to clear the transaction, which the regulators believe would harm competition.

In February, the EC launched an in-depth investigation into the deal to try to determine whether it would eliminate one of GE’s three main global competitors in the market for heavy-duty gas turbines (HDGTs). The following month, the commission extended the deadline for a decision by 20 working days till August 6.

(EUR 1.0 = USD 1.063)

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