PARIS (Reuters) - France chose General Electric (GE.N) to form an alliance with Alstom (ALSO.PA) on Friday - rejecting an offer from Siemens and Mitsubishi Heavy Industries - but said the deal still needed some work.
Below are the main conditions set out by Economy Minister Arnaud Montebourg in a June 20 letter to GE chief executive Jeff Immelt, a copy of which was seen by Reuters:
- a joint venture should be established in nuclear and steam activities. A list of veto rights for the French state relating to the nuclear segment “should be exhaustive and negotiated with the government”. Guarantees must be given on R&D investment.
- for joint ventures in other fields of business linked to France’s energy transition - hydro, renewables, wind and grid - the partnerships should be 50:50 with the global decision-making headquarters based in France.
- existing jobs must be preserved in France and at least 1,000 new positions created; financial penalties will be imposed if these targets are not met.
- the sale of GE’s rail signaling assets to Alstom must go ahead to strengthen Alstom’s transport business.
- the purchase of a 20 percent stake in Alstom by the French state “to ensure that the conditions mentioned in this letter are fulfilled”.
Reporting by Jean-Baptiste Vey and Mark John; Editing by Natalie Huet