general electric concludes $14billion acquisition of alstom

General Electric  has  received a green light from the European Union to buy French energy and transportation firm Alstom for $14 billion.Earlier In April 2014, GE was in talks to acquire the global power division of French engineering group Alstom for a figure of around $13 billion.

Last month General Electric ( GE)finally  concluded the €9.7bn acquisition of the power businesses of Alstom of France after securing the last regulatory approvals it needed,

GE's acquisition of energy giant Alstom's  including its lucrative energy business, is one of the its largest deal in the this vertical which  will bring together two of the world's biggest manufacturers of power plant hardware .

How does GE stand to gain from this acquisition ?

• The Alstom businesses give GE a much stronger position in steam turbines used in coal-fired, gas-fired and nuclear power plants, and in power grid equipment, as well as a much larger installed base of power plants for its service operations.
• The market for heavy duty gas turbines  has only four globally active full technology competitors: GE is the market leader followed by Siemens, Alstom and Mitsubishi Hitachi Power Systems (MHPS). This is due to the large upfront investments in R&D, testing and manufacturing required, setting very high technological and financial barriers to enter the market.

The merged entity would account for more than 50% of the EEA market for heavy duty gas turbines and also very high market shares on the worldwide market for 50 Hz frequency heavy duty gas turbines.