Alstom says it is focussed on rail transport following the sale of its power generation and grid businesses to GE for approximately €12.4bn.
The completion of the transaction follows the regulatory approval of the deal in over 20 countries and regions including the EU, USA, China, India, Japan and Brazil.
Proceeds from the transaction will be used to by Alstom to acquire GE’s rail signalling business for around €700m, a move that opens the signalling freight market to Alstom, while strengthening its presence in North America.
Alstom will also reinvest €2.4bn of funds received in the deal into three joint ventures with GE in the fields of grid, renewables and nuclear for €2.4bn.
Alstom says it has a record order book that provides long-term visibility, including recent awards that include metros for Sydney, Kochi, Riyadh, Paris; signalling solutions for Toronto greater area and Denmark; tram systems for Rio de Janeiro, Lusail and Sydney plus suburban trains for South Africa.
”We managed to secure a win-win deal with General Electric, which protects the interests of employees and customers in the Energy businesses, while reinforcing Alstom’s positioning in the transport industry. Alstom today holds leadership positions on a globally growing rail market and will rely on a solid financial base to support its growth strategy,” said Patrick Kron, chairman and CEO of Alstom.