HUTCHINSON, Kan. – It appears that Siemens is no longer searching for a take over of Alstom’s renewable energy platform. But the German company and Japan’s Mitsubishi Heavy Industries (MHI) presented a joint offer to France’s Alstom in Paris today, challenging a General Electric bid that sparked French government concern about retaining jobs and industry expertise.
Sources close to the bidders say they will propose that Siemens acquire Alstom’s gas turbines business while MHI 
will inject cash and industrial assets into a joint venture in steam turbines. The wind and renewable sector is off the table for Siemens but could be taken on by another entity.
The race to acquire power activities from the French train and turbine maker has entered a crucial week, ahead of a June 23 deadline set by GE for its 12.4 billion euros ($16.9 billion) bid for all of Alstom’s energy arm, which includes its thermal power, renewable power and grid businesses. Such an acquisition would put pressure on Siemens wind energy sector since GE is their largest competitor.
According to Reuters, The Siemens-Mitsubishi plan, would not be a direct buyout of Alstom’s power assets but instead set up one or several joint holdings in its power businesses, including in hydroelectric power equipment and grid, said two sources with knowledge of it.
The deal would comprise a cash element that could reach around 9 billion euros, those same sources said – including a payment of 4 billion by Siemens for the gas turbines business and Mitsubishi’s cash injection in the steam turbines joint venture and payment for a direct stake in Alstom.
Alstom, best known overseas for making TGV high-speed trains, employs 18,000 people in France, or around a fifth of its workforce. It was rescued from near bankruptcy by the state a decade ago and has since largely relied on public orders for power and rail equipment. At one time Siemens had offered to trade off its own high speed train sector for Alstom’s energy business. Siemens would still like to enter into some agreement with the company in the high-speed train business.