CCI by its order dated May 5, 2015 approved the acquisition proposed by General Electric Company (GE), GE Industrial France SAS; Alstom and Alstom Holdings.
The combination relates to the acquisition of Alstom’s thermal power, renewable power and grid businesses by GE and its group companies, the formation of joint ventures (JVs) i.e. the Grid and Digital Energy JV, the Renewables JV and the Global Nuclear and French Steam JV, between GE and Alstom in which Alstom will hold a minority shareholding, and acquisition of the signaling business of GE by Alstom. To execute the acquisition, they entered into the Master Agreement, Formation Agreement with respect to the Grid and Digital Energy JV, Formation Agreement with respect to the Renewables JV, Formation Agreement with respect to the Global Nuclear and French Steam JV, and Master Purchase Agreement. Companies were required to remove defects and provide information under Regulation 14 of the CCI (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011. The proposed combination was assessed by CCI under thermal power business, renewable energy business, grid business, signaling business. CCI observed that companies did not possess the relevant market share and thus, the combination would not resulting appreciable adverse effect on the competition. Considering the facts and relevant factors, CCI approved the acquisition under Section 31(1).