Siemens and Mitsubishi up Alstom bid

But GE also improves its original offer as the decision deadline looms

Siemens and Mitsubishi have increased their bid to acquire Alstom's energy business by £957 million, challenging an improved offer from General Electric as the deadline for a decision moves closer.

As the bidding war for Alstom intensifies ahead of the 23 June deadline, Siemens and Mitsubishi Heavy Industries (MHI) have increased their cash offer to £6.6 billion, raising their total valuation of Alstom's energy business by £320 million to £11.6 billion.

In an attempt to simplify their original offer MHI now intends to buy a 40% stake in the combined steam, grid and hydro business of Alstom, and combine them in a single holding company rather than three joint ventures as previously proposed. 

A Siemens-MHI statement said: “Such a proposal is superior industrially, financially and socially.” It also reiterated previous assurances that the deal would create 1,000 jobs in France, and an additional 1,000 apprenticeship training positions by Siemens.

This comes a day after GE's improved offer to create two 50/50 joint ventures within Alstom's grid, nuclear and renewable energy businesses and to sell its profitable rail signalling business to Alstom. However, it did not increase its original £7.9 billion bid.

The new proposal from GE comes in an attempt to satisfy French industry minister Arnaud Montebourg who had pushed the American group to offer a “strategic allegiance”.

GE chief executive Jeff Immelt said: “The alliance will retain and strengthen France’s presence in the energy business and reinforce Alstom Transport. It creates jobs, establishes headquarters decision-making in France and ensures that the Alstom name will endure.”

Meanwhile, Siemens and MHI also offered to enter into an “immediate” joint venture with Alstom in mobility management for the rail business, including signalling.

"The specified proposal continues to preserve Alstom's current perimeter in almost all its activities, enhances its industrial sustainability, and strengthens its financial structure," Siemens and MHI said in a joint statement.

Alstom said it will not comment on the new offers, but its board's decision is due on 23 June.