Alstom and Schneider Electric signed an agreement with Areva for the acquisition of Areva T&D, its transmission and distribution business, in January. This agreement comes as a result of the exclusive negotiations that started on 30 November, 2009 and after the completion of the consultation of the relevant employee representatives.
The closing of the transaction remains subject to the approvals of the relevant competition authorities and of the French Commission des Participations et des Transferts and is expected to occur in spring 2010.
The decision to sell AREVA’s Transmission and Distribution business was taken by AREVA’s supervisory board in June 2009 after a review of the group’s development plan.
At the close of the bidding process, the supervisory board convened in November 2009 and asked the executive board to begin exclusive negotiations with Alstom and Schneider Electric to draw up the terms of an agreement providing for a sale price of €4.09 billion in enterprise value, a commitment to maintaining all European sites for a three-year period and guarantees for the workforce.
All European employees are to be offered a similar position in the same geographical area at an equivalent qualification level and without loss of compensation or seniority; unless the economic situation deteriorates significantly, there will be no layoff program except for voluntary terminations.
Alstom and Schneider Electric intend to “build on the quality of the first contacts established with the Areva T&D management in order to jointly prepare the future”.