The acquisition of Alstom has been the largest of the 125 years of the history of General Electric.
The new CEO of General Electric (GE) – John Flannery has the daunting task of rectifying the General Electric company, a loss of speed after failing to anticipate the reversal in the markets of energy and oil. GE had acquired the energy hub of Alstom in 2015 to $ 13.5 billion. The new CEO is disappointed by this acquisition. “Alstom is revealed to be below expectations,” said on Monday John Flannery, in office since 1 August. “Alstom proved to be very disappointing, below our expectations. In a word, do not expect anything on the side of mergers and acquisitions ” in the short-term, repeated the leader.
If he praised the quality of the staff of Alstom, John Flannery has regretted the time it took the closing of the transaction and also explained that the performance of Alstom was particularly bad in renewable energy. “Clearly, there has been a bad evaluation of the market,” -he said, addressing criticisms thinly veiled to his predecessor, Jeff Immelt, the acquisition of which was for $ 13.5 billion for Alstom, the largest of the 125 years of the history of the conglomerate, has been one of the major feats of arms. But since then, the profitability of the division, GE Power has not taken off. To improve it, GE has changed the management and it intends to make a billion dollars in savings. This should lead to job losses in this division.
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