Alstom and Schneider Electric will acquire Areva T&D, Areva’s transmission and distribution business, after obtaining the approvals of the relevant competition authorities and the French Commission des Participations et des Transferts (CPT).
A consortium agreement was signed by the two partners in November 2009 for the purpose of this joint acquisition.
The price paid for Areva T&D’s shares reportedly amounted to AUD$3.36 billion. The transmission and distribution business came with a net financial debt of AUD$129 billion as of December 31, 2009.
The consortium agreement sets out the transfer of the Transmission business (about two thirds of the total) to Alstom and of the Distribution business (about one third) to Schneider Electric, as well as the ways under which they will be managed.
The agreement is said to allow both acquirers to immediately assume separate operational responsibility of each of these businesses.
Alstom and Schneider Electric will also develop cooperation between the Transmission and Distribution businesses, via commercial and license agreements.
R&D agreements will be put in place for the development of new technologies for both companies.
“Through this acquisition, Alstom builds, in addition to Power and Transport businesses, a third Sector constituting high voltage energy transmission business of the Group,” said Alstom chairman and chief executive officer, Patrick Kron.
“This Sector will benefit from aggregation of all complementarities and means of the Group, mainly of its international network expanded in 70 countries, its technological and industrial expertise and of existing liaisons between high voltage energy distribution and energy generation.
“Alstom’s expertise in power generation combined with the capabilities acquired in grid management will give the Group a unique position in the key market of Smart Grid.”