Alstom, Schneider Electric weigh joint bid for Areva T&D
31 Jul 2009
Power equipment major Alstom and electrical equipment Schneider Electric are considering a joint bid to acquire Areva Transmission and Distribution (T&D), a subsidiary of nuclear equipment major Areva, in what could be an all-French deal.
For this, Alstom and Schneider Electric would create a special purpose vehicle, which would bid for Areva T&D and, if this offer is accepted, would ultimately transfer the transmission activities to Alstom and the distribution activities to Schneider Electric. Such a transfer of activities would have no social consequences, the company said in a release.
A successful bid would "optimise the strategic, industrial and commercial strengths that both Alstom and Schneider can bring to each of the two areas of T&D and maximise the value of the business," the release said, adding, "This offer would consequently be more attractive for the vendor."
"The high voltage transmission part of Areva T&D is very close to Alstom's own activities in power generation. Alstom will bring to Areva T&D its expertise and knowledge in power networks and automated systems, its know-how in the management of large projects and the full benefit of Alstom's worldwide commercial network which is particularly focused on power generation utilities, the primary market for high voltage activities," the release said.
"Schneider Electric, which is very active in medium voltage distribution, would bring to Areva T&D its considerable technical and operational strengths in automation and medium voltage, a worldwide sales network, as well as a complementary access to industry, building and infrastructure as also major markets for medium voltage activities.
This consolidation around two major worldwide industrial groups, specialised in their own fields, would represent a considerable development opportunity for Areva T&D's employees.
Alstom, a global leader in power generation and rail infrastructure, provides turnkey integrated power plant solutions, equipment and associated services for a wide variety of energy sources, including hydro, nuclear, gas, coal and wind. The group employs more than 80,000 people in 70 countries.
With operations in more than 100 countries, Schneider Electric offers integrated solutions across multiple market segments, including in energy and infrastructure, industrial processes, building automation, and data centres/networks, as well as in residential applications. The company has 114,000 employees and reported sales of more than 18.3 billion euros in 2008.
