THE new deal linking Alstom with giant American firm General Electric has been welcomed by Stafford MP Jeremy Lefroy.
He joined Stafford borough council leader Mike Heenan in predicting that the deal could be good news for future job prospects at Alstom’s Stafford base.
“This is a good outcome for Stafford,” Mr Lefroy said. “GE and Alstom are mutually complementary businesses with no real overlap between them.
“Most of Alstom’s Stafford operations will go into a joint venture with GE and I firmly believe it will mean more investment in Stafford.
“They will want to build on what Alstom is already doing here.”
The Alstom board has agreed a complex deal which involves the purchase of part of its business by GE, plus a series of joint ventures between the two energy and power engineering firms.
The deal has yet to be ratified by shareholders and competition regulators but is expected to come into effect next spring.
GE originally bid to buy Alstom’s power and energy businesses outright, but the final deal sees a variety of ownership models.
GE plans to buy Alstom’s business manufacturing gas turbines for power plants, while Alstom will buy GE’s rail signalling systems division. Alstom and GE will also create three joint ventures for their nuclear, renewable energy and power grid businesses.
Meanwhile the French government, which originally opposed the GE bid, is to take a 20 per cent stake in Alstom, which has its headquarters in Paris. The move is designed to enable it to protect French interests.