Alstom and Schneider Electric proceeded yesterday with the closing of the transaction with Areva for the acquisition of Areva T&D, its transmission and distribution businesses, after obtaining the approvals of the relevant competition authorities and the French Commission des Participations et des Transferts (CPT).
A consortium agreement was signed by the two partners in November 2009 for the purpose of this joint acquisition. The price paid for Areva T&D's shares amounted to €2.29bn. The net financial debt of Areva T&D was around €0.89bn as of 31 December 2009.
The consortium agreement sets out the transfer of the transmission business (about two thirds of the total) to Alstom and of the distribution business (about one third) to Schneider Electric, as well as the ways they will be managed. The agreement allows both Alstom and Schneider to immediately assume separate operational responsibility of each of these businesses.
Alstom and Schneider Electric will also develop cooperation between the transmission and distribution businesses, via commercial and license agreements. R&D agreements will be put in place for the development of technologies to the benefit of both companies.