PARIS – The final obstacle to GE's $17 billion takeover of Alstom's power division has been overcome after the French government agreed to terms with the French engineering company's main shareholder.
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Economy minister Arnaud Montebourg said Sunday on French television that the government will buy a 20-percent stake in Alstom from construction giant Bouygues SA.
The move fulfills his pledge to ensure that the French government would retain a say in jobs and decision-making at the company, which builds power plants and France's famed high-speed TGV trains. He did not comment on the final price of the stake to be bought from Bouygues.
Alstom's board approved GE's offer Saturday, a day after the government withdrew its long-held opposition and threw its support behind the American takeover, with a few conditions.