Siemens and Mitsubishi's bid to buy parts of Alstom
A joint bid has been put forward by Siemens and Mitsubishi Heavy Industries for various parts of Alstom's energy assets (including 20% of Alstom Grid) which they would acquire in return for €7 billion cash.
During the joint press conference held in Paris, CEO of Siemens Joe Kaeser put forward in detail his company's side of the deal, commenting that the proposal is "superior" in financial, strategic, industrial and social aspects.
He highlighted the fact that whilst their bid of €7 billion was less than GE's €12.35 billion bid, Siemens and Mitsubishi had evaluated Alstom's total value at €14.2 billion –which is a 15% undervaluation on the behalf of GE.
President and CEO of Mitsubishi Heavy Industries, Shunichi Miyanaga announced numerous key initiatives, which would create around 1,000 new jobs. These included the establishment of a new R&D centre in France and a "global alliance of Hydro and Grid".
Following a meeting with the country's key unions, Siemens announced it would provide 1,000 apprenticeship positions within the country in addition to job creation. Benefits claimed by Alstom employees as well as jobs would be guaranteed.
After clearance of legal hurdles, a detailed roadmap would be created within six months.
Mitsubishi Heavy Industries will form an alliance with Alstom and will create three joint ventures.
The one with the biggest stake will be the 40% it plans to hold in Alstom's Steam and Nuclear business, then 30% of Alstom Grid, followed by 20% of the company's Hydro business. In return, €3.1 billion in cash will be paid by MHI.
"Investment in grid would better position MHI for the possible power deregulation as well as the separation of power generation from transmission/distribution. We believe that this proposal will create a partnership for our long term co-prosperity based on mutual trust,"
Siemens however propose a 100% acquisition of Alstom's gas business for €3.9 billion. In addressing the French government's concerns with regards to selling part of its "national interest", Siemens would not only explore with Alstom to utilise the opportunities of both companies in order to create a "European mobility champion", as well as establishing its European Headquarters for the joint gas service business in France.
"This proposal will be reviewed by the ad hoc committee and submitted to the Board of Directors of Alstom in the coming days," their statement read.
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