1. Eduard Biller Simon Foucher
GE / Alstom Merger
Eduard Biller
Simon Foucher

2. 1 2 3 4 Inhaltfolie Companies overview Strategy
Vortrag
Inhaltfolie 1
Companies overview 2
Strategy 3
Merger Story & Roadblocks 4
Aftermath

3. General Electric Power and Water GE Capital Oil and Gas Transportation
Aviation
Healthcare
Appliance and Lighting

4. General Electric Current Assets Cash And Cash Equivalents 91,666
90,208
Short Term Investments
39,438
47,907
Net Receivables
98,903
257,148
Inventory
18,704
17,689
Total Current Assets
248,711
412,952
Long Term Investments
26,574 -
Property Plant and Equipment
59,402
72,687
Goodwill
62,184
76,553
Intangible Assets
13,668
14,156
Other Assets
200,387
69,460
Deferred Long Term Asset Charges
2,541
Total Assets
610,926
648,349

5. General Electric
Combination of the different departments + problems of 07

6. Vortrag

8. Total Group
Year ended
Variation
Actual Figures (in € million)
31 March '15
31 March '14
14/15
Goodwill
€ 688
€ 5,269
€ (4,581)
Intangible Assets
€ 444
€ 2,053
€ (1,609)
PPE
€ 656
€ 2,968
€ (2,312)
Associates and non-consolidated investments
€ 363
€ 705
€ (342)
Other non-current assets
€ 473
€ 510
€ (37)
Deferred taxes
€ 732
€ 1,647
€ (915)
Non-current assets
€ 3,356
€ 13,152
€ (9,796)
Working capital assets
€ 6,802
€ 14,506
€ (7,704)
Marketable securities and other financial assets
€ 61
€ 26
€ 35
Cash and cash equivalents
€ 1,599
€ 2,276
€ (677)
Current Assets
€ 8,462
€ 16,808
€ (8,346)
Assets held for sale
€ 21,415
€ 293
€ 21,122
Assets
€ 33,233
€ 30,253
€ 2,980
Equity (Group share and minorities)
€ 4,224
€ 5,109
€ (885)
Provisions (non-current and current)
€ 1,314
€ 1,901
€ (587)
Accrued pension and other employee benefits
€ 461
€ 1,525
€ (1,064)
Financial debt (current and non-current)
€ 5,186
€ 5,704
€ (518)
€ 11
€ 176
€ (165)
Working capital liabilities (excl. Provisions)
€ 6,864
€ 15,838
€ (8,974)
Liabilities related to assets held for sale
€ 15,173
€ -
Liabilities

9. Combination of both companies
Not possible since divesture in GE Capital

10. Acquisition Timeline

11. Alstom stock never fully recovered from the recession

12. Start 2014: Pessimistic outlook
Alstom Cuts Margin and Cash Flow Outlook as Demand Falls
Plans to sell $2.7B billion in assets
Including minority stake in Rail

13. Apr 2014: Industrial sector showing strength
Alstom to Sell Steam Parts Unit for 1B$
S&P 500 Climbs to Record as Treasuries Fall, Oil Tumbles

14. April : Early rumors of GE bid
24th:Public news that GE and Alstom discussing potential deal
13B€ Transition; largest GE acquisition
Bouygues (29% shareholder of Alstom) on board

15. April: Followed by rumors of competitive bids
27th: News of alternative bid from Siemens
Exchange for part of its rail transport arm plus a cash offer as good as GE's
30th: GE confirms12.4B€ (17B$) bid for Alstom SA’s energy business

16. May: Government steps in
5th: French government states that it will not back GE’s bid
GE must improve bid and combine two companies’ rail businesses; lobbies Siemens to participate in auction
7th: Siemens CEO says he won't be forced into a white knight bid for Alstom

17. May: Government Insists
14th: France issues decree nicknamed "décret Alstom"
Power of the state to veto takeover of "strategic interests" (energy, water, transport, teleco, health)
22nd: GE extends bid to allow discussions with the government

18. June: Competition becomes official
16th: Siemens &Mitsubishi submit a competing proposal
Siemens acquire Alstom's gas turbine activities for 3.9B€
MHI to form JV with Alstom , acquiring stakes in power for 3.1B€

19. June: Bidding heats up
19th: GE revised its bid, same price, but with a lower cash transaction value.
Form a 50:50 JV combining in renewable and electric grid business and another JV in steam turbine and nuclear power.
GE to sell its rail signaling business to Alstom

20. June: Bidding heats up 20th: Siemens and MHI modified their offer
MHI increasing its stake to 3.9B€ (+800M€ from 3.1B€)
Siemens increases offer to 4.3B€ (+400M€ from 3.9B€)
Economy minister stated he would block both bids & French government was now backing the GE offer

21. June: GE Wins 21st: Alstom board met and backed GE's revised bid
22nd: French government agreed terms with Bouygues
Taking a 20% stake in Alstom from Bouygues shares at a 2–5% discount on a value of a minimum of ≈€35

22. Dec: Almost final approvals
19th: Shareholders approved the transaction by 99.2%
Bouygues under pressure to make a deal witg government due to regulation issues in the teleco sector

23. EU Steps in
early 2015 the EU Competition Commission began an examination process
Deal leaves only Siemens as GE’s main rival in Europe
Concerns of stifling innovation price rises

24. Sep 2015: Final regulatory approvals
8th European Union and US DOJ approved the deal
Subject to divestiture of Alstom's gas turbine manufacturing and parts
Closing targeted in Q4 2015

25. Aftermath

26. Expected Merger afterwards

27. Strategic advantages
Empowers the following divisions: Thermal Energy (complementary Steam/Gas) Windpower: Combination of onshore/offshore Hydro power: No presennce, but Altsom has a leading role Services: complementary position Electricity transmission: complementary in products and solutions Grid (complementary) Transportation (will be taken over as well)

28. References