GE's Alstom Deal Clears Antitrust Hurdles

FAIRFIELD, CT—Antitrust regulators in Europe and the US have given a conditional go-ahead to GE’s planned acquisition of Alstom‘s power and grid unit. The US Department of Justice and the European Union both informed GE that they would approve the deal provided that Alstom subsidiary Power Systems Manufacturing is divested.

To that end, GE said Tuesday it would sell the subsidiary to Italian-based Ansaldo Energia, a supplier of power generation plants and components. Expected to close late in the fourth quarter, the Alstom deal is now valued at US$9.5 billion, representing GE’s largest industrial acquisition to date, and will mark a major step in the company’s focus on its core businesses. The company began winding down its GE Capital arm earlier this year, selling billions of dollars worth of commercial real estate debt and assets globally.