The European Commission is expected to announce its verdict on Alstom’s restructuring plan on July 7, two days ahead of the company’s annual general meeting.
Discussions on the restructuring of the company have continued since the basis of an agreement was brokered between French Minister of Finance Nicolas Sarkozy and European Competition Commissioner Mario Monti in May (RG 6.04 p369), much of the debate focusing on what partnerships Alstom must agree to in the future. While the Commission wanted a firm commitment, Chairman & Chief Executive Patrick Kron confined his comments on this in Alstom’s annual report filed on June 17 to a statement that ’we intend to implement, within the next four years, industrial partnerships to ensure our future development’.
Alstom had announced on May 26 that it would not make any significant acquisitions in the transport sector within Europe over the next four years, and that it would dispose of businesses represent €1·5bn in sales. These include the locomotive factory in Valencia and the company’s transport activities in Australia and New Zealand.
- Alstom announced on June 11 that it had signed an agreement to co-operate in the manufacture of locomotives with CNR Datong Electric Locomotive Co in China. This was signed in Paris by Alstom Transport President Philippe Mellier, Cui Dianguo, President of China Northern Locomotive & Rolling Stock Industry (Group) Corp, and Datong President Shi Xiaoding in the presence of French Prime Minister Jean-Pierre Raffarin and Vice-Premier of China Zeng Peiyan.