Mitsubishi joins Siemens to help pursue Alstom

Oliver Smith
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SIEMENS has enlisted Japanese conglomerate Mitsubishi for a possible joint bids for parts of French engineering firm Alstom.

Siemens and Mitsubishi Heavy Industries said in a joint statement that they would decide on a proposal to Alstom’s board of directors by Monday next week.

“I appreciate Mitsubishi Heavy Industries’ commitment to join our efforts and I do look forward to working together with Mitsubishi to create a long-term oriented solution for Alstom, Mitsubishi and Siemens,” said Siemens chief executive Joe Kaeser in the statement.

Taking Mitsubishi Heavy Industries on board could give Siemens more firepower and flexibility to keep up with a rival £10.14bn bid for Alstom’s power activities by US conglomerate General Electric last month.

“Mitsubishi Heavy Industries 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,” said Mitsubishi Heavy Industries chief executive Shunishi Miyanaga.

General Electric recently extended its bid until 23 June to continue negotiations with France, and has promised to create 1,000 new jobs within three years of any deal being agreed.

The French government had said it wanted better offers than the one General Electric put forward, to preserve jobs and the country’s energy independence.