GE Will Buy Alstom’s Gas-Turbines Unit for $910 Million
FAIRFIELD, Conn. — General Electric Co., the biggest provider of power-generating equipment and services, said Tuesday that it will buy Alstom’s large gas-turbines division for $910 million to strengthen its power business in Europe.
The purchase ends a 1989 joint venture under which France’s Alstom built heavy-duty gas turbines that GE sells to power plant operators. Alstom will keep the venture’s smaller industrial gas-turbines business.
GE’s purchase comes as Asea Brown Boveri Ltd., based in Germany, and Alstom agreed Tuesday to combine their power-generating equipment businesses, challenging GE’s No. 1 rank.
GE will now own the venture’s plants in Germany and France, allowing it to satisfy more European orders locally and freeing capacity in U.S. plants as electricity deregulation spurs demand.
Fairfield, Conn.-based GE also will get the venture’s service businesses in Singapore and Argentina, augmenting the company’s push to expand services worldwide.
GE doesn’t expect to eliminate any of the venture’s 2,500 jobs, said Robert Nardelli, head of GE’s Power Systems unit.
GE’s shares fell $3.81 to close at $106.56 on the New York Stock Exchange.
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