Troubled French engineering giant Alstom is to sell its transmission and distribution activities to Areva for 950 million Euros.
The transmission and distribution sector sells products and systems that are targeted at the medium and high voltage markets. The sector’s power conversion activities are not part of the transaction and will remain within Alstom.
In the last financial year, Alstom’s Transmission & Distribution Sector (excluding the Power Conversion activities) generated sales of 3.2 billion Euros, accounting for 15% of Alstom’s revenues. It employs 25,000 people in 70 countries.
The move comes just days after Alstom worked out a financing package with the French government for 3.2 billion Euros to keep it afloat.
The Areva deal is subject to normal closing conditions, including regulatory clearances and the completion of employee consultations. It is expected to close in January 2004.