GE CEO Immelt Says He Is Confident Regulators Will Approve Alstom Deal

By Ted Mann 

General Electric Co. Chief Executive Jeff Immelt said Wednesday he is confident regulators will approve his deal to buy French conglomerate Alstom SA's power business.

GE has chafed at the slow pace of review by regulators in the European Union, who are examining how GE's acquisition of Alstom's power turbine business would affect the industry in Europe, where there are few other suppliers.

The company needs the $17 billion deal to boost its industrial revenue and to help offset moves to shrink its finance arm and weaknesses in its big oil and gas business. But it is facing close scrutiny from European regulators worried it will concentrate the market for power turbines.

Alstom's sales and earnings have dropped in the months since the deal was announced in 2014, and both Mr. Immelt and the chief of GE's power business, Steve Bolze, have said that the uncertainty of the regulatory review is hurting Alstom's prospects.

"The processes in Europe put this company in play for 15 months and that's tough on a business," Mr. Immelt told investors at the Electrical Products Group Conference in Longboat Key, Fla. "We remain confident that this deal will get approved around the world."

GE has said it was willing to make concessions to get the deal past regulators. On Wednesday, Mr. Immelt said the company could be willing to sell intellectual property around the product but not "anything that impacts the service revenue stream."

Regulators earlier this month said they aimed to issue a final decision on the Alstom deal by Aug. 21.

Write to Ted Mann at [e-mail]

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