Abstract

This case is about GE’s acquisition of Alstom energy activities, a French company considered as a national champion and a key strategic element for the energy independency and the national defense of France. General Electric (GE), number one in power generation equipment worldwide, is an ambitious company led by the vision of its CEO, Jeff Immelt of becoming number one on the steam turbines market through the acquisition of Alstom steam turbines and especially with the acquisition of its “Arabelle” turbine, the most powerful steam turbine in the world. The acquisition of the energy activities of the French company Alstom can be used as a real business case for Merger and Acquisition classes. The case puts first the emphasis on a fast-growing, full of opportunities industry (the turbines market). Even though it is mostly about steam turbines, this can be used to foster the general interest of students about climate changes and the future of energy power generation. However the actual purpose of the case is mainly about an acquisition, which seems rather successful at first sight but involved the intervention of the French state during the negotiation. Therefore, this case can be a great support for M&A classes in order to address the implication of a state in an M&A transaction, which is something quite non common. At the time this case was written, and regarding the information given in the case, the future of this acquisition is uncertain: it could go any directions, success or failure. This case thus requires students to critically assess an actual business situation and evaluate the challenges ahead, particularly regarding the integration of the French company into the large American conglomerate.

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