Alstom energy takeover takes new turn

Japanese giants plan to join Siemens in bid to beat General Electric offer

Hitachi has said it hopes to join Mitsubishi Heavy Industries and Siemens in their joint bid for Alstom's energy assets.

The news follows 11 June's announcement that MHI and Siemens are planning a joint bid for the French company's energy assets. A three-party bid would give the group greater financial firepower and flexibility to counter a rival £10 billion bid for Alstom's power business from General Electric Company.

Katsumi Nagasawa, head of Hitachi's power systems group, said: “Mitsubishi is our partner. We want to work with them.”

The Nikkei said on 12 June that the two Japanese companies would also set up a joint venture to bid for Alstom's steam turbine operations. MHI would hold 65% in the venture and Hitachi 35%.

A proposal is expected to be put to Alstom's board by 16 June.

Meanwhile, a French government official said on 12 June that it is still discussing with GE ways to improve its offer. The French government wants the US firm to give more guarantees about the number of jobs in France, the location of decision-making centres in the country and the country's "energy independence". The government has been talking to GE for more than a month.

The government official said the GE offer is the only one on the table, but the government expects Siemens to make a bid.

Any bid will have to be approved by the French government, which has the power to intervene in takeovers of strategic companies.