Siemens and Mitsubishi Heavy Industries have formulated a joint offer on the French Alstom for a total of 7 billion euros. The German and Japanese companies communicated this in a joint note. In particular, Siemens has proposed to Alstom to purchase the transalpine group's assets in gas turbines for 3,9 billion euros, promising to maintain employment levels in France and Germany for at least three years. Mitsubishi, for its part, is ready to invest 3,1 billion euros to enter the group's capital.
The proposal from Siemens and Mitsubishi contrasts with that of Ge for 12,35 billion which Alstom will have to examine by 23 June. From an economic point of view, the US group's offer is higher, but Alstom and Mitsubishi have focused on the issues of maintaining employment and developing an alliance with the French company that could allow them to obtain support of the French government, very active in the game. Today, among other things, the French president Francois Hollande will receive the presidents of Siemens and Mitsubishi Heavy Industries, Joe Kaeser and Shunichi Miyanaga.
The proposal of the Japanese-German consortium does not directly involve the activities in the railway sector, but explains that after the closing of the transaction and after having analyzed together the implications on regulatory matters "Siemens would be ready to become a long-term shareholder in the transport” to “create a strong European champion with global reach”. Meanwhile, Siemens is ready to buy the gas turbine assets and related service contracts for 3,9 billion, guaranteeing, in addition to employment, also the fact that the headquarters of this activity will remain in France.
As for Mitsubishi Heavy Industries, the Japanese group intends to become a stable and long-term shareholder of the Alstom group by purchasing a 10% stake in the capital from Bouygues and investing 3,1 billion to create three joint ventures which will purchase 40% of the assets ' of Alstom in steam and nuclear, 20% in the networks business and 20% in the water business. “The alliance will make it possible to create more than a thousand jobs in France”, specify the Japanese. Shunichi Miyanaga, in the note, recalls how "we already have a successful alliance with a French company, Areva, in the nuclear sector" and Alstom could be next.
While the president and CEO of Siemens, Joe Kaeser, speaks of a "win-win" operation for each of the parties involved. Alstom would remain an independent player in the transport and energy sector with a strong brand. Its energy business would be strengthened by the partnership with Mitsubishi Heavy Industries and we intend to explore all opportunities with Alstom to create a European champion in the railway sector”.
