Gas

GE, Alstom deal expected to close mid-2015

GE's Alstom Deal Closing Nov. 2, Says CEO Immelt

GE (NYSE: GE)‘s deal to purchase Alstom’s power assets for $16.9 billion is on track to close mid-2015, according to the head of GE’s power business.

“We have always said mid 2015. That’s what we’re on track for,” said Steve Bolze, president of GE’s power and water business.

Alstom announced that France’s government has granted clearance of the sell; and the European works councils is also supporting the transaction, according to Reuters. GE said Alstom’s $10 billion in revenue from emerging markets was a significant factor for making the deal.

Originally announced in June, the deal would expand GE’s installed base power-generating turbines.

“After four months of integration planning, we like the deal more today than the day we announced it,” Bolze said. “Based on the information we have gotten in more detail since the original due diligence, the economics of the deal are still intact.”

Alstom shareholders will vote on the transaction on Dec. 19.  GE still needs regulatory approvals from more than 20 other countries.

GE said it projects the deal to boost earnings by 6 cents to 9 cents per share in 2016 through cost savings.

“If you look at the power market going forward, 70-plus percent of the growth in the next 20 years is going to be in the emerging markets,” Bolze said. “While there’s always going to be some soft spots in certain countries around the world, in aggregate to play in this industry you have to play at scale, you have to play globally.”