GE vies for French conglomerate’s energy sector

Wall Street Journal : Alstom, a French multinational conglomerate that specializes in power generation and transport, has accepted a bid for its power-generation and transmission business from US-based General Electric. The decision to sell Alstom’s energy operations, which make up more than two-thirds of the company’s revenue, was leaked last week and has created friction within the French government. GE, however, has assured French president François Hollande that one of the benefits will be the increased job opportunities for French workers. Alstom found itself forced to sell some of its assets at the end of last year in an effort to raise much-needed cash. The deal still needs to be approved by the company’s labor representatives and shareholders. In the meantime, another large conglomerate, Siemens, based in Germany, plans to make a bid and has indicated a willingness to swap some of its rail assets to help Alstom bolster the other part of its business—manufacturing TGV bullet trains and rail infrastructure.