EU: Watchdog opens probe of GE’s $14 billion Alstom deal

General Electric’s 12.4 billion euro bid for Alstom’s power equipment business could lead to price rises, EU antitrust regulators said on Monday as they opened a full-scale investigation into the deal, increasing pressure on the US conglomerate to offer concessions.

GE has had its acquisition ambitions quashed by European regulators before. In 2001 the European Commission blocked its $42 billion purchase of rival Honeywell International despite U.S. regulatory approval.

The Commission said it is worried that GE would discontinue the production of certain models of Alstom heavy duty gas turbines and not bring to the market the French company’s advanced HDGT technology. It will decide by July 8 whether to clear or block the deal.

GE rejected the regulatory concerns.

“We disagree with the preliminary concerns raised by the EC statement today and Phase II is the normal process for engagement on these issues. Our goal remains to secure the required regulatory approvals and close the transaction by mid-2015,” it said.

Full Content: The Wall Street Journal

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