GROUP 4: CATHRINE HENGEBL, ELINE GUERN, LUCA

HANGARTER, FLORIAN GARBACCIO, THANH DUY HA

ALSTOM
French multinational company
Railway sector
Founded in 1928
Financial crisis in 2004
Alstom power and Alstom Transporation
Present in 60 countries
31 000 employees
 GENERAL ELECTRIC
American mulitnational company
Founded in 1892
Operates in diffferent sectors:
GE Power
GE oil & Gas
GE Renawable Energy
GE Energy Connections
GE Aviation
GE Healtcare
GE Transportation
GE Capital
GE difgital
Operates in more than 160 countries
305 000 employees
ACQUISITION BETWEEN ALSTOM
AND GE
GE bought the Power and Grid part of Alstom
Represented 70 % of the turnover in Alstom
Negotiations lasted for 18 months
French Government was opposed to the acquisition
Proposals from Siemens and Mitsubishi
Transaction of 12 billion euros in November 2015
SWOT analysis of Alstom
Strenghts
- Leader on technology
- Leader on railway business and lines
- Robust network
Opportunities SWOT
- Evolution of Europe transport lines
- Increase of the demand in the
sustainability energy sector
- Positive evolution in the nuclear
sector
Weaknesses
- Decrease of the group performance
- Alleged anti-competetive activities
- Slow performance
Threats
- Economic instability in Europe
- Rising cost of raw materials
- Intense competition
SWOT analysis of General
Electric
Weaknesses
Strengths
- Limited presence in Asia
-Operates in more than 60 countries - Too dependent on the American
- Extensive R&D capability market
- Diversified products

Opportunities
SWOT Threats
- Competitors market shares in
- Growthof the global elctricity demand developing countries
- Innovation in customers services
- Volatile public policy
- Exposure to the global economy
INCENTIVES FOR THE
ACQUISITION
Why would GE want to buy Alstom Power?

The market was interesting for GE

GE CEOs pivot strategy:
1. Grow industrial turnover
2. Strengthen Research activity
3. Increase contract activity services
4. Globalize activities
Expand their marketshares

Why would Alstom want to sell Alstom Power?

CHANGE MANAGEMENT IN
ACQUISITIONS
ORGANIZATIONAL ISSUES
Insecurity of losing their jobs
RELEVANT CLIENTS
External clients
EU
The French Government
Labour Unions
Shareholders in Alstom

Internal clients
Managers
Employees in Alstom