In the offing more than a year now, Alstom announced that it closed the sale of its energy business (power generation and grid) to General Electric in a deal worth €12.4 billion. With this sale, Alstom would regain its focus on the rail transport business.
Around 700 million euros will be used to acquire GE’s signaling business, which is allied to rail transport. Interestingly, €2.4 billion will be reinvested in three separate joint ventures with GE in the fields of grid, renewables and French steam, and nuclear. This implies that Alstom will not be completely divested from the businesses that it has sold to GE. However, the details of Alstom’s equity stake in these JVs is yet unknown.