Don't miss

Replay


LATEST SHOWS

BUSINESS DAILY

Alibaba founder rolls back on pledge to create 1m US jobs

Read more

IN THE PRESS

Controversial or creative? A chef gets lobsters high before boiling them so they don't suffer

Read more

THE DEBATE

Breakthrough in Pyongyang? Kim promises to visit Seoul, dismantle nuclear sites

Read more

MIDDLE EAST MATTERS

Rapper I-NZ's 'This is Iraq': When music gets political

Read more

ENCORE!

Film show: 'The Sisters Brothers' and 'Leave No Trace'

Read more

IN THE PRESS

Stormy Daniels's X-rated book attacks Trump's presidency - and manhood

Read more

PERSPECTIVE

Polar explorer Sebastian Copeland on the 'urgency' of climate change awareness

Read more

BUSINESS DAILY

US-China trade war deepens as Beijing calls for global support

Read more

EYE ON AFRICA

Amnesty warns of 'horrific' violence in Cameroon's anglophone regions

Read more

Business

EU launches inquiry into General Electric’s Alstom deal

© Sebastien Bozon, AFP I An employee of the French engineering group Alstom stands in front of the logo of the US company General Electric (GE) on April 29, 2014

Text by NEWS WIRES

Latest update : 2015-02-23

EU competition regulators launched Monday a probe into US group General Electric's planned 12.4-billion-euro ($14.1-billion) acquisition of the energy business of French rival Alstom.

The European Commission said the deal would eliminate one of the three main competitors to GE in the market for heavy-duty gas turbines, potentially affecting customers in the 28-nation bloc.

"We are concerned that the proposed acquisition might not only lead to higher prices but also result in less choice for customers and less innovation in the sector," EU Competition Commissioner Margrethe Vestager said in a statement.

"Technology is and will continue to be crucial to help Europe meet its environmental commitments. Therefore, it is essential to maintain competition in the heavy-duty gas turbines market."

GE beat off fierce competition from German rival Siemens last year to seal the deal but then had to accept a working partnership with the French government in Alstom's associated nuclear, steam turbine, offshore wind and hydro power businesses.

It also had to hand over its train signalling operation to Alstom's high-speed rail unit, famous for its TGV trains, which will become the new core business of Alstom.

The French government demanded the concessions in response to a public outcry that one of the country's prized industrial giants would fall completely into foreign hands, costing jobs and damaging national prestige.

Under EU rules the Commission, the European Union's executive branch, has 90 working days, or until July 8 to make a final decision.

(AFP)

Date created : 2015-02-23

  • FRANCE

    Alstom’s board backs bid from General Electric

    Read more

  • FRANCE

    France secures option for major stake in Alstom

    Read more

  • FRANCE - USA

    France's Alstom to pay $772 million in US bribery case

    Read more

COMMENT(S)