EC probes incorrect, misleading info in GE-LM Wind deal
The Cherbourg plant will have the capability to manufacture the world's longest blade at 88.4 meters. Image by LM Wind.
The European Commission (EC) is investigating General Electric (NYSE:GE) for breaches of the EU merger procedural rules in relation to the now-closed acquisition of Danish wind turbine blades maker LM Wind Power.
The current probe will not have an impact on the EC decision to okay the deal, the commission said in a Thursday statement. It warned, however, that GE could face a fine of up to 1% of its annual global revenue if the EC finds that the company “intentionally or negligently supplied incorrect or misleading information”.
In a Statement of Objections sent to GE, the EC alleges that there was incorrect or misleading information in the US company's notification on January 11, 2017 of the LM Wind transaction. More specifically, GE failed to inform the Commission of certain research and development (R&D) activities and the development of a specific product.
The notification was withdrawn by GE on February 2 and replaced on February 13 with a second notification containing the missing information on the future project.