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General Electric CEO Jeffrey Immelt

BRUSSELSThe European Union threw down a hurdle to General Electric Co.s planned $17 billion acquisition of France-based Alstom SAs energy unit Monday, saying it would open an in-depth investigation into whether the deal might stifle competition.

The European Commission, the EUs top antitrust authority, said it was concerned that the transaction, announced last June, might limit competition in the market for heavy-duty gas turbines, which are mainly used in gas-fired power plants. It will make a final decision on the merger by July 8.

Such in-depth probes arent unusual and often dont affect proposed tie-ups if the regulator decides to clear the deal unconditionally or require limited asset sales. But the move still adds months to the timeline and injects fresh uncertainty into GEs GE, -0.16% biggest ever deal.

Alstom ALSMY, -2.17% ALO, -0.09% Chief Executive Patrick Kron said last month he expected only limited overlaps where European regulators might require that the company divest operations for competitive reasons.

An expanded version of this report appears at WSJ.com.

Read the original here:
The Wall Street Journal: EU opens probe into GE, Alstom deal