Ansaldo seals deal to buy Alstom gas turbine technologies, assets from GE

Following the EU Commission approval on 8th September, 2015, of General Electric's 

a

cquisition 

of Alstom's power and grid businesses, Ansaldo Energia 

has announced that it has signed a binding agreement with General Electric to acquire Alstom's assets. This is likely to allow the company to increase its turnover twofold in the coming five years, in the gas turbine sector.

The approval is conditional upon the divestiture of main and technologically most advanced parts of Alstom's heavy duty gas turbine business and key personnel for its further development. Fondo Strategico Italiano and Shanghai Electric also hold stakes of 44.8% and 40% respectively. 

Ansaldo Energia 

will acquire the following Alstom's assets:

• · All Alstom's heavy duty gas turbine intellectual property rights for the latest ratings of the GT26 and GT36 turbines, existing upgrades and pipeline technology for future upgrades;
• · Servicing agreements for 34 GT26 turbines already sold in recent years by Alstom;
• · More than 400 Alstom employees in Baden, Switzerland who will continue to develop the Alstom heavy duty gas turbine technology and support the service and turbines business;
• · Alstom's Power System Manufacturing (“PSM”), a company based in Florida, United States, mainly focused on other OEM aftermarket businesses.

Ansaldo Energia will license to General Electric to offer after-market services:

• · PSM’s intellectual property for Siemens-Mitsubishi gas turbines
• · Alstom’s intellectual property for the portions of Alstom's heavy duty gas turbine business to be retained by General Electric.

General Electric will also provide certain transitional services to support the continuity and viability of the business in the short term. This deal is expected to close early in 2016 following receipt of required regulatory approvals.

Giuseppe Zampini, CEO, Ansaldo 

Energia said, “This agreement lays the foundations for Ansaldo Energia to enhance a sustainable growth in power 

generation industry by extending technological capability and product portfolio in the advanced heavy duty gas turbine business both in equipment and service basis.”