February 26, 2016 07:00 AM Eastern Standard Time
BADEN, Switzerland–(BUSINESS WIRE)–Today, GE (NYSE:GE) closed its transaction to divest select power generation assets to Ansaldo Energia. GE first announced the transaction in September 2015 when the European Commission and U.S. Department of Justice approved GE’s acquisition of Alstom’s Power and Grid businesses on the condition that GE would commit to divest segments of Alstom’s heavy-duty gas turbine business, pending regulatory approvals.
The final purchase price of the deal is €120 million, and today’s announcement confirms that the transaction has met all required regulatory approvals to close. Under the terms of the deal, GE has divested the following assets to Ansaldo Energia:
- Alstom’s GT26 (an F-class gas turbine) product line for new unit sales.
- Alstom’s GT36 technology development program, which upon completion would result in an H-class gas turbine product.
- Services contracts for 34 GT26 units. The remainder of Alstom’s gas turbine installed base (approximately 720 units) remains with GE.
- In addition, to address concerns raised by the Department of Justice and European Commission regarding competition for the service of GE gas turbines, GE has divested Alstom’s Power Systems Manufacturing (PSM) business, which provides after-market parts and services for other OEMs’ equipment. GE will receive a license to the PSM intellectual property used to offer after-market services for non-GE gas turbines.
This transaction close marks another important milestone as GE continues to integrate Alstom’s Power and Grid businesses and transform into the world’s premier digital industrial company.
About GE Power
GE Power is a world leader in power generation with deep domain expertise to help customers deliver electricity from a wide spectrum of fuel sources. We are transforming the electricity industry with the digital power plant, the world’s largest and most efficient gas turbine, full balance of plant, upgrade and service solutions as well as our data-leveraging software. Our innovative technologies and digital offerings help make power more affordable, reliable, accessible and sustainable.
For more information, visit the company’s website at www.gepower.com.
GE (NYSE: GE) is the world’s Digital Industrial Company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive. GE is organized around a global exchange of knowledge, the “GE Store,” through which each business shares and accesses the same technology, markets, structure and intellect. Each invention further fuels innovation and application across our industrial sectors. With people, services, technology and scale, GE delivers better outcomes for customers by speaking the language of industry. www.ge.com