Alstom Picks GE, Santander to Buy GE Consumer Finance Unit

Nigel Thomas
23 Jun, 2014
New York City

GE won a bidding war with Siemens to acquire Alstom energy business for $17 billion. Banco Santander agreed to acquire consumer finance business of GE Capital for

[R]4:00 PM Frankfurt – GE won a bidding war with Siemens to acquire Alstom energy business for $17 billion. Banco Santander agreed to acquire consumer finance business of GE Capital for €700 million. Carrefour agreed to acquire DIA France for €600 million. Kentz acquired by Canada-based SNC-Lavalin Group for £1.2 billion.[/R]

European market indexes declined after the euro zone’s flash composite purchasing manager’s index decreased to 52.8 in June, tracked by Markit.

The similar survey conducted in Germany showed private sector expanded for the 14th month in a row in June but manufacturing sector index in France in the month declined to 48 from 49.3 in May.

Weak French data highlighted losing competitiveness of French firms in the global marketplace as Asian companies gain grounds.

In London trading, FTSE 100 index fell 0.3% or 22.93 to 6,802.27 and in Frankfurt the DAX index slipped 0.3% or 33.16 to 9,954.08.

In Paris, CAC 40 index slid 0.3% or 13.48 to 4,527.86.

Alstom SA dropped 3.2% to €27.11 and the company selected General Electric Co’s $17 billion bid for its energy business.

Under the agreement, the France government or any company that it’s select will buy a share of Bouygues 20% stake in Alstom at a price of €35 or $47.60, adjusted for special dividends.

Bouygues’s has current stake of 29.3% in Alstom. The deal is expected to close in 2015.

Banco Santander, S.A slid 0.4% to €7.81 after the Spain-based commercial bank agreed to acquire GE Money Bank AB, the consumer finance business of GE Capital in Sweden, Denmark and Norway, for about €700 million or $952 million.

Carrefour SA rose 0.1% to €26.32 after the France-based convenience stores operator agreed to acquire DIA France, discount supermarkets operator for €600 million.

With more than 800 stores, DIA France recorded sales of €2.3 billion in 2013.

Kentz Corporation Limited surged 32% to 927.60 pence after the U.K.-based engineering and construction service provider confirmed Canada-based SNC-Lavalin Group Inc offered about £1.16 billion or $1.98 billion in cash.

Porvair Plc declined 3.8% to 312.60 pence after the U.K.-based filtration equipment maker said revenue in the first-half ending in May climbed 32% to £51 million from £38.6 million a year ago period.

Profit in the period jumped to £2.6 million compared to £2 million and earnings per share increased to 5.9 pence from 4.7 pence a year earlier.