Paris, Dec 14 (AFP) The head of Alstom said today thatthe French rail company will excercise its options to sell itsstakes in joint ventures with US industrial conglomerateGeneral Electric.
Alstom sold off its power and grid businesses to GE in2015 for 9.7 billion euros (now worth USD 11.5 billion) tofocus on its rail business, including its TGV fast trains.
In order to secure the deal for Alstom's prized gasturbine unit -- a large, lucrative business with long-termcontracts and income stream in a sector in which GE wasalready the world leader -- the US company had to create threenew joint ventures covering renewable energy, electricitygrids and nuclear power.
But in September Alstom agreed to be swallowed by Germanrival Siemens in a deal seen aimed at becoming sufficientlylarge to compete with state-run Chinese rival CRRC Corp, theworld's biggest train maker which was formed via a merger oftwo Chinese firms in 2014.
"We are exiting", said Alstom's chief executive HenriPoupart-Lafarge. "It's true that Alstom's old energyactivities didn't find their place in this operation".
GE will have "complete and whole ownership", he added.
The French government's national security concerns aboutthe nuclear power business means discussions about possiblerestrictions need to be held.
The announcement by Alstom comes a week after GEannounced it will slash 12,000 jobs from its power unit amidanaemic global demand for gas turbines and other powerequipment.
The money from the sale should allow for the payment of aspecial dividend to shareholders before the merger. (AFP)KIS.
This is unedited, unformatted feed from the Press Trust of India wire.