The decision to sell AREVA’s Transmission and Distribution business was taken by the Supervisory Board on 30 June, 2009 as part of the group’s development plan.
The price paid for Areva T&D’s shares amounts to €2.29 billion. The net financial debt of Areva T&D was about €0.89bn as of 31 December, 2009.
The consortium agreement sets out the transfer of the Transmission business (about two thirds of the total) to Alstom and of the Distribution business (about one third) to Schneider Electric, as well as the ways under which they will be managed. The agreement allows both acquirers to immediately assume separate operational responsibility of each of these businesses.
Alstom and Schneider Electric will also develop cooperation between the Transmission and Distribution businesses, via commercial and license agreements. R&D agreements will be put in place for the development of innovating technologies to the benefit of both companies.
“Through this acquisition, Alstom builds, in addition to Power and Transport businesses, a third Sector constituting high voltage energy transmission business of the group. This Sector will benefit from aggregation of all complementarities and means of the group, mainly of its international network expanded in 70 countries, its technological and industrial expertise and of existing liaisons between high voltage energy distribution and energy generation. Alstom’s expertise in power generation combined with the capabilities acquired in grid management will give the group a unique position in the key market of smart grid,” says Patrick Kron, Chairman & CEO at Alstom.
“We will combine our teams’ expertise in medium voltage and that of Areva D to create a new business, Energy, elevating Schneider Electric to the position of global leader in medium voltage. This consolidation reinforces considerably our offers in medium voltage and network automation. It will also strengthen Schneider Electric’s presence in new economies and access to utilities and electro-intensive customers, and enhance the group’s position at the centre of the smart grid technological revolution,” adds Jean-Pascal Tricoire, President & CEO at Schneider Electric.