GE wins Alstom energy bidding war

France secures a 20% stake in firm to maintain jobs

General Electric has won its £10 billion bid for Alstom's energy assets, as shareholder Bouygues agreed to sell 20% stake of Alstom to the French state.

GE's offer to acquire the power and grid businesses of Alstom gained unanimous support from the French firm's board, however the deal still needs regulatory and staff representatives approval.

The US firms bid prevailed over a rival Siemens-Mitsubishi Heavy Industries offer, and will see GE form thee joint ventures with Alstom in the steam turbine, renewable energy and electrical-transmission businesses. In addition GE will sell its rail-signalling operations to the French firm for £480 million.

GE chief executive Jeff Immelt said that the deal is “good for France, GE and Alstom”.

If approved, the deal is expected to be completed in 2015.

Joe Kaeser, chief executive of Siemens, maintains its rival bid with Mitsubishi Heavy Industries was superior, but added: "We respect and understand the political interest of the government in the field of energy technology."

Meanwhile, the French state plans to acquire a controlling stake in Alstom from main shareholder Bouygues in an attempt to safeguard the countries energy and transport interests and jobs.

However, the government wants to pay market price (€28 per share) while Bouygues is demanding about €35 euros per share.