Germany-based Siemens AG, which has long had its eye on acquiring Alstom's energy business, has joined forces with Japan-based Mitsubishi Heavy Industries (MHI) to consider making a joint bid to the French conglomerate. By June 16, Siemens and MHI will decide whether to submit a proposal, one that would compete with a previous $17 billion bid to Alstom from U.S.-based GE.
In a statement, Siemens President and CEO Joe Kaeser says, ‘I appreciate MHI's commitment to join our efforts, and I do look forward to working together with MHI to create a long-term oriented solution for Alstom, MHI and Siemens.’
Shunishi Miyanaga, president and CEO of MHI, adds, ‘MHI has been invited by Siemens to join forces, and we firmly believe that we can substantially contribute to a partnership solution for Alstom which will create value for all parties involved, including the country of France."
Siemens and MHI did not publicly disclose further details. However, according to a Bloomberg report, Siemens still plans to offer its rail assets in exchange for Alstom's energy business as part of a proposal.
Meanwhile, GE continues to negotiate with the French government in order to earn approval of the company's bid. In May, French Economy Minister Arnaud Montebourg called on GE to prove the proposal would, among other things, create local jobs. Bloomberg reports that although Montebourg had openly preferred a Siemens proposal at first, he indicates that GE's new plan to create 1,000 jobs in France has greatly enhanced the U.S. company's bid.