Joint Bid For Alstom?

Hitachi, Mitsubishi, Siemens Pondering Plan To Purchase Alstom

Posted on June 12, 2014

Japan’s Nikkei newspaper has reported that Hitachi Ltd. hopes to join Mitsubishi Heavy Industries Ltd. and Siemens AG in a joint bid for Alstom’s energy assets. A three-party bid would give the group greater financial firepower and flexibility to counter a rival US$17 billion bid for the French company's power business by GE.

Earlier last week, the Nikkei reported that the two Japanese companies would set up a joint venture to bid for Alstom's steam turbine operations, which it said would be valued at US$4.90 billion. Mitsubishi Heavy would hold 65% and Hitachi 35% of the venture, matching the shareholdings in their existing thermal power partnership, the paper added.

Siemens is expected to offer US$4.9 billion for Alstom's gas turbine business, while Alstom's power grid business would be excluded from the deal, the Nikkei said.