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The European Commission decided to expand its borders by buying Alstom ge merger as a profitable investment. The transaction price was $17 billion. To date, the main task of GE alstom merger for 2015 is to satisfy the commission about the merger. The Commission fears that a merger could lead to a monopoly on the market, especially among turbine manufacturers.
As for the conditions, the deal will affect about half of the entire market, with the exception of China.
According to GE and Alstom latest news, the Commissioner worries that the acquisition will lead to higher prices and will also affect the smaller choice that is available to customers. As a result, this may cause a decline in the number of actively developing innovations.
Nevertheless, technology is still important, because that helps Europe fulfill its obligations. An important task for GE merger with Alstom will be to maintain a decent level of competition.
Additional transactions of Alstom ge merger
German Siemens and French Alstom combine assets.
Negotiations on the merger of the world’s leading players in the machine-building industry were successfully concluded.
The consolidation process will be “complicated”, but it is “a necessary decision”, the management of both companies stated. The goal: to resist European and Chinese competitors, in particular – the corporation CRRC, which currently dominates the world market.
The merger project was discussed back in 2014. Then the French giant preferred to sell its energy assets to the US company General Electric. This year, Siemens also negotiated with the Canadian Bombardier.
According to the forecasts, the combined annual profit of the new joint venture will amount to 15 billion Euros. It will become the world leader in the production of signaling equipment and number two among the rolling stock manufacturers.
Alstom’s unions fear that the German concern will “swallow” the domestic flagship of French industry and lead to mass layoffs.
French media reported that the government of Emmanuel Macron gave a guarantee of safety of jobs for the next four years.
Alstom is a leader in the field of transport infrastructure, energy supply (a quarter of the world’s light is “ignited” by this company). Presented in 100 countries, the number of employees exceeds 93 thousand people. The head of the company is Patrick Cron. The company takes care of the environment, so it develops programs to monitor the level of carbon dioxide in the air and introduces them at plants in Europe and the US. It also takes part in the creation of high-speed trains.
Reaction and response from Alstom ge merger
The company Alstom ge merger confidently states that there are very few turbines on the European market. Thus, a merger with a high probability does not affect the market. The future merger cannot distort the European market, since it is in an absolutely static state. To date, globally, sales are about 200 turbines. Given the company Alstom ge merger, the market today has three largest producers, which will fight for the title of leader.