Mediaboss Marketing

(02-24 11:27)

The European Union opened an in-depth probe of American conglomerate General Electric's US$14.1 billion takeover of the power division of French company Alstom fearing higher prices and less choice. The European Commission made the move Monday after an initial investigation indicates potential competition concerns in the market for heavy-duty gas turbines,'' which are used in gas-fired power plants, it said in a statement. EU Competition Commissioner Margrethe Vestager said her anti-competitive concerns also included less innovation in the sector.'' In international business, the European Commission wields major power since its rejection of a multinational deal has thwarted mergers and takeovers in the past, or forced companies into fundamental changes of agreement to meet EU concerns. The commission said that in one sector of the heavy duty gas turbines, the new GE-Alstom merged company would control about half the market in both Europe and the world, excluding China. GE rejected the worries and said in a statement that the gas turbine market is both global and highly competitive. We disagree with the preliminary concerns, raised by the European Commission. The commission has until July 8 to make a final decision.AP

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GE under scrutiny over Alstom deal