General Electric / Alstom European Commission Phase II Merger

In September 2015, the European Commission (“EC”) cleared the merger between General Electric (GE) and Alstom (Thermal Power – Renewable Power & Grid Business), subject to conditions, after a Phase II investigation. The completion of the €9.7 billion ($10.6 billion) transaction followed regulatory approval of the deal in over 20 countries and regions including the EU, U.S., China, India, Japan and Brazil. The antitrust authorities in the U.S. and Europe obliged GE to sell off some of its maintenance assets to overcome anti-competitive effects on the gas turbine market.

Compass Lexecon provided economic advice to a third party during the EC Phase II investigation of the merger. The transaction substantially increased the installed capacity of the merged entity. We estimated the impact of the transaction on the likelihood of winning future tenders in comparison to competitors based on an econometric model that used the installed capacity of a given OEM with a given customer as an input.

Our team included Thilo Klein, Enrique Andreu, Nadine Watson, Vilen Lipatov, Catalina Campillo, Bernardo Sarmento, Anastasia Tseomashko and Hyung-Joong Kim.