The European Commission, concerned about the effects the multi-billion acquisition will have on competition in the gas turbines market, will allow GE to make its case at a hearing today
US giant General Electric (GE) is making a pitch to European lawmakers on the merits of its €12.4 billion bid for the energy unit of French engineering firm Alstom at a closed hearing today (2 July).
Along with several energy companies, the Commission has voiced concern that the takeover proposed last June between GE and Alstom will reduce the gas turbines market to a duopoly between GE and Germany’s Siemens.
In February, Europe’s top competition regulator Margrethe Vestager said she was, “Concerned that the proposed acquisition might not only lead to higher prices, but also result in less choice for customers and less innovation in the sector.”
The hearing is at the request of GE, which has been lobbying for over a year to win approval, in more than 50 meetings with regulators and 50,000 pages of written arguments.
Several large EU energy companies, including Siemens, are expected to attend the hearing before senior Commission officials.
Earlier this week Alstom chief executive Patrick Kron told a French newspaper he was “confident” the deal would pass. "I hope that we are now in the final leg and I am confident ... My position is very clear. I do not see why Plan A would not work out," he told Le Figaro.
French Economy Minister Emmanuel Macron has also inserted himself in the argument, saying the deal should take into account Europe’s competition from Chinese rivals. GE fought hard to win the backing of the French government for its takeover, following initial strong opposition.
In May, GE Chairman and CEO Jeff Immelt told the American Chamber of Commerce to the EU in Brussels that, “Europe is not living up to its potential. [The deal] will give us the chance to bring innovation back to the energy business in Europe.”
The Commission will present its final decision before 21 August.
Along with several energy companies, the Commission has voiced concern that the takeover proposed last June between GE and Alstom will reduce the gas turbines market to a duopoly between GE and Germany’s Siemens.
In February, Europe’s top competition regulator Margrethe Vestager said she was, “Concerned that the proposed acquisition might not only lead to higher prices, but also result in less choice for customers and less innovation in the sector.”
The hearing is at the request of GE, which has been lobbying for over a year to win approval, in more than 50 meetings with regulators and 50,000 pages of written arguments.
Several large EU energy companies, including Siemens, are expected to attend the hearing before senior Commission officials.
Earlier this week Alstom chief executive Patrick Kron told a French newspaper he was “confident” the deal would pass. "I hope that we are now in the final leg and I am confident ... My position is very clear. I do not see why Plan A would not work out," he told Le Figaro.
French Economy Minister Emmanuel Macron has also inserted himself in the argument, saying the deal should take into account Europe’s competition from Chinese rivals. GE fought hard to win the backing of the French government for its takeover, following initial strong opposition.
In May, GE Chairman and CEO Jeff Immelt told the American Chamber of Commerce to the EU in Brussels that, “Europe is not living up to its potential. [The deal] will give us the chance to bring innovation back to the energy business in Europe.”
The Commission will present its final decision before 21 August.
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