May 10, 2018 / 8:15 AM / 13 days ago

Alstom signs $3 billion agreement with GE to exit energy joint ventures

(Reuters) - French manufacturing group Alstom (ALSO.PA) said on Thursday it had signed an agreement with General Electric (GE.N) to exit three joint ventures in return for a payment of 2.594 billion euros ($3.08 billion).

The logo of French engineering group Alstom is seen at a plant in Aytre near La Rochelle, France, August 31, 2016. REUTERS/Regis Duvignau

The three joint ventures, in grid, nuclear and renewable assets, were created as part of Alstom’s 12.35 billion euro sale of its energy business to General Electric in 2015.

“Alstom intends to exercise its options to sell its interests in the ‘Renewables’ and ‘Grid’ Joint Ventures in 2018,” the company announced in a statement.

The exercise of these options between September 4 and 10 would imply General Electric had exercised its option to acquire Alstom’s interest in the “nuclear” joint venture, it said.

    The three joint ventures would be transferred to GE’s full ownership on Oct. 2, it said.

    Siemens and Alstom agreed last September to merge their rail operations, creating a European champion to better withstand the international advance of China’s state-owned CRRC Corp Ltd (601766.SS).

    (Press release : bit.ly/2I7XS8f )

    ($1 = 0.8427 euros)

    Reporting by Nolwenn Brossier in Gdynia; Editing by Adrian Croft

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