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Siemens and Mitsubishi announce joint bid for Alstom

President of Siemens, Joe Kaeser and Head of Mitsubishi, Shunichi Miyanaga at the Elysee Palace in Paris, 17 June 2014.
President of Siemens, Joe Kaeser and Head of Mitsubishi, Shunichi Miyanaga at the Elysee Palace in Paris, 17 June 2014. Reuters/Philippe Wojazer

Siemens and Mitsubishi unveiled on Monday the terms of their joint bid for Alstom to compete with General Electric's 12 billion euros offer.

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The German industrial group Siemens said in a statement on Monday that it "intends to aquire 100 per cent of Alstom's gas business (...) for 3.9 billion euros".

That's less than a preliminary offer including Alstom's energy unit and train division for 11 billion euros.

But Siemens announced that it will join forces with Japan's Mitsubishi Heavy Industries (MHI) to compete against the rival American GE offer.

In the joint-bid, Mitsubishi will inject 3.1 billion euros into the French group in a bid, to "become a stable and long-term shareholder of Alstom" it said in a statement.

MHI would create three joint ventures, by acquiring 40 per cent of Alstom's nuclear business, and 20 per cent each of its grid and hydroelectric businesses. 

GE, whose offers last until June 23rd, said it would not engage in a "bidding war" and was confident that its deal "is good for Alstom, for France and GE".

To allay any fears, GE promised to create 1,000 jobs in France.

But Siemens and MHI promised the same on Monday.

President François Hollande met with heads of Siemens and Mitsubishi, Joe Kaeser and Shunichi Miyanaga, on Tuesday to discuss on progress.

The French government said that no preference is to be given either to GE, Siemens or Mitsubishi, but  requirements about employment, Alstom's independence and the continuation of its activities, would be stressed. 

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