The hottest Siemens General Electric vs. Alstom ac

2022-08-22
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Siemens and general electric compete against Alstom acquisition case. After the news that General Electric of the United States intended to spend $13billion to acquire Alstom's power business in France came out, German industrial giant Siemens came out halfway to join the merger and acquisition battle. On the 27th, Siemens issued a statement saying that it had written to ALSTOM to express its willingness to further explore future strategic opportunities. French media said that Siemens intended to exchange part of its train manufacturing business plus cash for Alstom's power turbine business

On Friday, Reuters quoted a source as saying that GE proposed to acquire Alstom's electrical turbine power generation and electrical equipment department for about $13billion. If it does, it will become the largest acquisition transaction in GE's history. It is reported that the acquisition proposal has been supported by Bouygues, a French integrated enterprise with a 29% stake held by Alstom's major shareholders. Sources said that the transaction structure of the two companies has been determined and almost everything is ready

however, just one day after the news of the merger came out, the transaction suddenly encountered variables. German Siemens came out halfway and made an asset exchange proposal. According to Le Figaro, Siemens suggested that Alstom buy its high-speed train and locomotive department, excluding the urban railway department, while Siemens bought Alstom's power turbine business. The German business daily said the deal was worth billion euros

if Siemens' proposal goes ahead, Alstom's transportation business will include Siemens' ice high-speed train and ALSTOM's original TGV high-speed train, thus becoming an undisputed leader in the transportation industry in Europe. Siemens will also become the world's largest manufacturer of power generation and transmission equipment

if Ge can successfully acquire Alstom Power material certification: ROHS certification, UL yellow card certification, CQC certification, it will effectively enhance the strength of this business. According to insiders, Alstom and Siemens are direct competitors in steam turbines, offshore wind power, hydropower and transmission businesses, while General Electric is blank in offshore wind power and hydropower. This means that GE can strengthen its steam turbine and transmission businesses with the help of this M & a transaction

at present, general electric, Siemens and ALSTOM have similar products in the energy business segment, including boilers, gas turbines, steam turbines, hydropower turbines, transmission and distribution equipment, etc. For Alstom, the most important source of revenue is the power business. The financial report shows that the revenue of this business in the last fiscal year was about 15billion euros, accounting for 71% of the company's global revenue. Once this part of assets is sold, Alstom's business will only be left to the transportation department, including the production of high-speed TGV trains, other rail vehicles and railway signal equipment, which is essentially equivalent to being split

the transaction may not be smooth sailing

affected by the slowdown of emerging markets, weak economic growth in Europe and the reduction of capital expenditure of European utility companies, Alstom has fallen into a dilemma of heavy debt and sluggish demand in the past few years. ALSTOM's share price fell 20% in a year before the news of GE's proposed acquisition came out

as a leading diversified manufacturing enterprise in the world, Alstom has always been regarded as a strategic asset of France and is one of the largest private enterprises in France. Therefore, the French government attaches great importance to the acquisition of Alstom by external competitors

the French presidential palace issued a communiqu é on the 27th, saying that French President Hollande held a meeting with Prime Minister Valls and relevant ministers that night to discuss employment and French energy autonomy related to the acquisition of Alstom

the French Minister of economy, production revitalization and digital economy, Arnold montebourg, issued a communiqu é on the 27th, saying that the French government hopes to have sufficient time to carefully review the proposal on the acquisition of Alstom and will not accept any hasty decision. Both Ge and Siemens have invested heavily in France and are leading players in French industry. The French government is ready to review the proposals of the two companies, will work to protect the interests of French industry, and consider the financial participation of the French government

it is reported that montebourg originally planned to meet with general electric CEO Immelt on the 27th, but after Siemens' public acquisition proposal, his meeting with Immelt was postponed to later this week. According to Bloomberg, French President Hollande will meet with Immelt and Siemens respectively on the 28th to help adhesive manufacturers around the world improve product performance and production technology in various utilization fields. CEO Joe Caesar and chairman Gerhard Cromer will also meet

Simon, an analyst at Credit Suisse, believes that no large company participating in the ALSTOM acquisition war will sail smoothly because the hardness value is determined by the initial plastic deformation resistance and the continuous plastic deformation resistance. For Siemens, the competitive threat from general electric forced it to take action

sources familiar with the situation said that compared with general electric, Siemens and ALSTOM have a higher degree of overlap in French businesses, which means that GE's acquisition of solid screws may lead to fewer layoffs. ALSTOM's board of directors held a meeting on the 27th and announced that the company would make prudent strategic consideration for the acquisition and issue a new statement no later than the morning of the 30th

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