Alstom announced that it has signed an agreement with GE through which it will exit from three energy-related joint ventures formed three years ago. The Renewables, Grid and Nuclear joint ventures were established as part of the November of 2015 sale of the Alstom Energy Business to GE.
At that time, the €12.35 billion acquisition was the largest in GE history, bringing together GE Power & Water and Alstom Power into a new GE division, GE Power. GE is now required to buy Alstom SA’s stakes in the three joint ventures for €2.59 billion.
At the time of the agreement, then GE Chairman Jeffrey Immelt, called the acquisition “another significant step in GE’s transformation.”
“The complementary technology, global capability, installed base, and talent of Alstom will further our core industrial growth, Immelt said. “We are open for business and ready to deliver one of the most comprehensive technology offerings in the energy sector for our customers.”
But a prolonged slump in the global energy segment prevented the acquisition and joint ventures to live up to their promise.
GE said in a regulatory filing in February that it had already been informed of Alstom’s intent to exit the ventures this year. The purchase is expected to be completed this fall.