24.06.2014 - General Electric has bought business in France
American corporation General Electric got the win in the struggle for the acquisition of the Energy Division of the French company Alstom. According to the report, the board of directors approved the deal of Alstom for the sum of $ 17 billion it is worth noting that the initial proposal was $ 13 billion. The deal was approved the Government of France.
To increase the sale price to the contests were also invited alliance of Siemens and Mitsubishi. According to details of the transaction General Electric will buy Alstom turbine business, 50% of companies running powered networks. At the same time, Alstom buys from General Electric the business of manufacturing the railway signaling. It should be noted that Alstom is one of the world's largest producers of energy equipment and rail transport.
We are positive about growth prospects of General Electric shares after the transaction and assess the upside potential of 12-14% at year end.