Hitachi enters bid to snap up Alstom's energy assets with $10 billion offer from Siemens and Mitsubishi

Rumours published by Japanese business news source Nikkei say that Siemens and Mitsubishi could offer ¥1 trillion ($9.797 billion) in exchange for Alstom's power divisions.

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While the amount is significantly less in comparison to General Electric's $17 billion cash offer, it would only cover the gas and steam turbine divisions and not Alstom's grid arm, as previously reported.

An anonymous source has revealed that Mitsubishi would divide Alstom's steam turbine assets with Hitachi, who supposedly consulted General Electric for a potential deal.

"We are discussing (the joint acquisition), although the talks have not reached a stage where we can make a formal announcement," the source told Nikkei.

It was reported that the steam turbine business would be split 35% and 65% between Hitachi and Mitsubishi respectively.

Combined bid

Siemens and Mitsubishi Heavy Industries revealed that there have been in talks with regards to offering a joint bid to buy Alstom's power assets.

While the companies confirmed the talks had taken place, they refused to give further details.

Shunishi Miyanaga, President and CEO of Mitsubishi Heavy Industries said the following:

"MHI has been invited by Siemens to join forces and we firmly believe that we can substantially contribute to a partnership solution for Alstom which will create value for all parties involved, including the country of France,"

The financial news website explains that offers would both enhance Siemens' valuation and also deal with possible antitrust issues that could have taken place had the company taken all of Alstom's power divisions for itself.

Joe Kaeser, President and CEO of Siemens said:

"I appreciate MHI's commitment to join our efforts and I do look forward to working together with MHI to create a long-term oriented solution for Alstom, MHI and Siemens."

Reference:

Power Transformer News

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