Siemens and Mitsubishi consider joining forces for Alstom

Mitsubishi Heavy Industries (MHI) and Siemens AG announced that they have joined forces in evaluating a potential proposal for certain energy assets of the French multinational conglomerate, Alstom.

According to sources, one option being discussed is that Mitsubishi Heavy buys Alstom’s steam turbine and grid business and Siemens to get the gas turbine operations. MHI and Siemens will decide on the submission of a proposal to Alstom‘s Board of Directors by June 16.

Shunishi Miyanaga, President and CEO of Mitsubishi Heavy Industries, stated:

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.

Joe Kaeser, President and CEO of Siemens, stated:

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.

General Electric has already made a US$16.9 billion bid for Alstom’s energy business accepted by the French company’s board. However, Parisian political stopped the transaction and opened the door for Siemens to make a rival offer. Both Siemens and GE have been trying to get the backing of the French government which is seeking to extract the best guarantees from any bidder for jobs and the country’s energy independence.

Siemens already controls close to 50 per cent of the European Union’s high-voltage direct current energy market.

Alstom has solutions for all energy sources (coal, gas, nuclear, fuel-oil, hydropower, wind) and is a leader in innovative technologies for the protection of the environment (reduction of CO2 emissions, elimination of pollutant emissions).