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General Electric rumoured to buy Alstom in $13bn deal

24 Apr 2014
There is speculation today that General Electric Co. is in talks to buy Alstom, the French turbine and train-maker. The deal could be worth a huge $13 billion and could be announced as early as next week according to reports.

The deal would allow GE control of Alstom’s high-speed TGV trains and rail-signal technology, and has the backing of Alstom shareholder Bouygues, which own 29% of the French company.

The deal would also see Alstom’s value at 25% above its current market capitalisation.

The potential deal comes after January figures showed Alstom would miss its full-year profit target for 2014, and the company has been hit hard by a drop in orders for power equipment from utilities, which in turn are suffering from weak electric prices.

Alstom, which is also behind the technology for some of the UK’s power stations including the Hinkley Point project, announced 1,300 job cuts last year.

GE, the US jet engine manufacturer has seen positive first-quarter results in its core oil and gas division.