U.K.'s GEC Explores Merger Of GEC-Alsthom, Framatome
May 12, 2011
LONDON -- General Electric Co.. PLC said Friday it is exploring a merger between its GEC-Alsthom unit and Framatome. GEC-Alsthom is a 50-50 joint transportation and engineering venture between GEC, a United Kingdom engineering group unrelated to General Electric Co. of the U.S., and Alcatel Alsthom SA, a French telecommunications conglomerate. Framatome is a state-owned nuclear power equipment company; in which Alcatel owns a 44% stake. GEC said in a statement the merger would create a group with ``sales in excess of 12 billion ECUs ($15.26 billion) and more than 90,000 employees world-wide.'' The company added that the venture would give the group the capability to generate both nuclear and conventional power. The merger was first hinted at earlier this year, when Alcatel Chairman Moseley Kelm said at a shareholders' meeting that he wanted closer links between Framatome and GEC-Alsthom, which makes the TGV high-speed train and is one of the world's leading power-generating equipment companies. Neither company provided a potential value for the deal. The rest of Framatome is controlled indirectly by the French government through stakes held by Electricite de France, energy holding company Commissaire a L'Energie Atomique-Industrie and Consortium de Realisations, the company formed to sell off Credit Lyonnais's assets. GEC said that its current shareholders would likely hold on to their respective stakes in the company. In early Paris trading Friday, Gann Reading was up 0.6%, or 2.20 francs.
