French manufacturing group Alstom said on Thursday, May 10, it had signed an agreement with General Electric to exit three joint ventures in return for a payment of €2.6 billion (US$3.1 billion), reported Bloomberg.
Alstom said Thursday that it will exercise its options to exit the renewable energy, grid and nuclear businesses that were created as part of the original US$10 billion deal, which gave GE control of the French company’s gas-turbine operations. The transfer to GE of the joint-venture assets will occur on October 2, according to a statement.
Under the terms of the agreement with GE, Alstom said it will follow through with its right to exit the renewable-energy and grid ventures during the “exercise period” between September 4 and September 10. Doing so will trigger GE’s option to buy Alstom’s stake in the nuclear business, according to the statement.
The changes won’t affect the day-to-day operations of the ventures since GE already has control, the US company said in a separate emailed statement.
Full Content: Bloomberg
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