General Electric (NYSE:GE) continues to make steady progress toward completing its purchase of the energy business of Alstom.
The European Commission (EC) and U.S. Department of Justice (DOJ) have authorized GE to acquire Alstom’s Energy businesses with certain commitments, Alstom announced Sept. 9.
The decisions conclude constructive discussions during the recent months between the companies and the authorities. “In addition to fulfilling the authorities’ wish to maintain the level of competition in the market, General Electric’s commitments protect the interests of Alstom employees, shareholders and customers”, said Patrick Kron, Chairman and CEO Officer of Alstom.
Overall around twenty approvals have been granted in total, enabling the project to enter its final phase. The closing of the transaction is targeted as early as possible in the fourth quarter 2015, Alstom said.
The multi-billion-dollar agreement for GE to acquire most of Alstom’s energy business was announced in June 2014. The parties have slowly been making progress with regulators in the United States and Europe.
The Wall Street Journal reported recently that GE’s strong compliance reputation has enabled it to move forward with the transaction despite an international corruption investigation involving Alstom.
The EC’s approval is reportedly conditional on GE divesting a segment of Alstom’s heavy-duty natural gas turbine business. Although much of Alstom’s gas turbine installed base, several hundred units, would remain with GE.