PARIS—Alstom SA said Monday it would lower the price for the
sale of most of its energy assets to General Electric Co. as it
seeks to support concessions the two companies are working on to
win European Union approval for the deal.
GE submitted concessions this month to European regulators, who
have challenged the Alstom acquisition on the grounds that it would
hamper competition for heavy-duty gas turbines on the Continent.
Regulators will decide by Sept. 11 whether to let the Alstom deal
go through.
"Alstom's board of directors has unanimously accepted that the
group would contribute financially to [ a ] remedy package," Alstom
said. The company said it would reduce the sale price by €300
million ($329.5 million) from the original €12.35 billion purchase
price.
The €300 million euro adjustment to the purchase price is the
first indication of the scale of the concessions GE has offered to
win approval in Brussels. The reduction reflects the value of an
as-yet unspecified remedy that GE has offered to regulators in
hopes of salvaging the deal.
GE hasn't said what remedies it has offered regulators, but
Chief Executive Jeff Immelt has told investors he would be willing
to give up some intellectual property it stands to acquire from
Alstom in order to win approval. Mr. Immelt has also said GE can't
accept any remedies that reduce its take from servicing Alstom's
fleet of power turbines in Europe.
"We can confirm that there has been an adjustment of €300
million to the purchase price," GE spokesman Seth Martin said in an
email. "This is part of an agreement related to the remedies
proposed to the EC. The purchase price adjustment only applies if
the EC approves the remedy proposal."
Both companies have been working to secure competition and
regulatory authorizations since the deal was announced last year.
In June, Europe's top competition regulator sent GE a formal list
of concerns relating to its proposed acquisition of Alstom's power
business.
GE has repeatedly said that it wouldn't push ahead with the
acquisition at any price and has tried to convince regulators that
their concerns were misplaced.
The parties will continue to pursue the approval processes with
the objective of closing the transaction as soon as possible within
the coming months, Alstom said.
Write to Nick Kostov at Nick.Kostov@wsj.com and
Ted Mann at ted.mann@wsj.com
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