Introduction

US company, General Electric (GE) chief: Jeffrey R. Immelt

Acquired energy services of Alstom for $13.5 billion. GEs largest ever deal
France Economy Minister, Arnaud Montebourg not in favour of deal

French Economy

High unemployment. Slow economic growth

Socialist party suffered losses. Reshuffling of government
Foreign investors welcome by French President, Hollande
Report from Markit Economics, a data analysis firm, showed the country to be a Eurozone
laggard.
Manuel Valls New prime minister. More business friendly

Alstom

Workforce = 18000
Energy business = 2 thirds of companys business($27.6 billion)
Crucial link to countrys nuclear establishment

Arnaud Montebourg(French Economy Minister)

Outspoken socialist. Accused by critics of too much market interference

Did not want foreign takeover of Alstom. Accused Alstom of negotiating behind French
Governments back.
Passed decree to allow French government to block deal on national security grounds.
Encouraged Siemens(German company) to make a competing bid.
Immelt
Made 3 trips to France. Provided reassurances and sweeteners
Ready to meet French governments top demands
Respects Montebourg. Considers him a good negotiator and professional
Venture

3 joint venture carrying Alstom name

Gas-turbine business will be a part of GE
French Government planned to buy 20% of remaining Alstom shares holding company for
train manufacturing business and joint ventures.
50-50 joint ventures with Alstom in the areas of renewable energy, steam turbines and
nuclear energy, with the government having veto rights on nuclear contracts.
Alstom has rights to eventually sell its stake to GE for a fixed price(unlikely as state is a
stakeholder)
GE promised to create 1,000 technical jobs in France in the next three years and agreed to
pay a penalty of 50,000 euros for each job that it falls short of that quota
After completion of deal, Alstom will be a listed holding company, housing the French half of
the joint ventures
Alstom's rail business, which manufacturers the high-speed TGV trains to be strengthened by
GEs rail signaling business. Gives Alstom access to U.S market
GE agreed to give a special state-owned company control over patents related to Alstom's
advanced Arabelle nuclear steam turbines, and ceded to the government the final decision on
how that technology should be licensed