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Press Release20 June 2014Joint Press Release by Mitsubishi Heavy Industries and SiemensMunich and Tokyo
Mitsubishi Heavy Industries and Siemens specify proposal to Alstom
The specified proposal continues to preserve Alstom's current perimeter in almost all its activities, enhances its industrial sustainability, strengthens its financial structure, enabling it to be a approx. Euro 20 billion revenue French listed group. With additional 1,000 new created jobs by MHI and additional 1,000 apprenticeship training positions by Siemens the proposal will foster job creation in France. MHI and Siemens continue to firmly believe that their proposal is the best one for Alstom, its employees, its clients, its shareholders and French national interests. Such proposal is superior industrially, financially and socially.
The specifications result in the following measures:
MHI now intends to buy a 40 percent stake in the combined steam, grid and hydro business of Alstom. This amendment will significantly simplify the implementation of the transaction, as this investment may now be undertaken through one single holding company, as opposed to three JVs as contemplated in its June 16th proposal. Therefore cash contribution from MHI increases by Euro 800 million, from Euro 3.1 billion up to Euro 3.9 billion, while the valuation of the underlying businesses remain unchanged.
Based on a subsequent, more advanced opportunity / risk analyses Siemens had been able to increase its cash offer by Euro 400 million. This will increase the total evaluation of the proposal accordingly to Euro 4.3 billion.
In addition to the proposed Letter of Intent for the Rail business, Siemens offers to enter immediately into a Joint Venture for Mobility Management including Signalling between Alstom and Siemens.
For this press release
Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, Japan, is one of the world's leading heavy machinery manufacturers, with consolidated sales of 3,349.5 billion yen in fiscal 2013, the year ended March 31, 2014. MHI's diverse lineup of products and services encompasses four business domains, "Energy & Environment", "Commercial Aviation & Transportation Systems", "Integrated Defense & Space Systems" and "Machinery, Equipment & Infrastructure." For more information, please visit the MHI website below: http://www.mhi.co.jp/en/index.html
Siemens AG (Berlin and Munich) is a global powerhouse in electronics and electrical engineering, operating in the fields of industry, energy and healthcare as well as providing infrastructure solutions, primarily for cities and metropolitan areas. For over 165 years, Siemens has stood for technological excellence, innovation, quality, reliability and internationality. The company is one of the world's largest providers of environmental technologies. Around 43 percent of its total revenue stems from green products and solutions. In fiscal 2013, which ended on September 30, 2013, revenue from continuing operations totaled €75.9 billion and income from continuing operations €4.2 billion. At the end of September 2013, Siemens had around 362,000 employees worldwide on the basis of continuing operations. Further information is available on the Internet at: http://www.siemens.com.
Siemens AG (Berlin and Munich) is a global powerhouse in electronics and electrical engineering, operating in the fields of industry, energy and healthcare as well as providing infrastructure solutions, primarily for cities and metropolitan areas. For over 165 years, Siemens has stood for technological excellence, innovation, quality, reliability and internationality. The company is one of the world's largest providers of environmental technologies. Around 43 percent of its total revenue stems from green products and solutions. In fiscal 2013, which ended on September 30, 2013, revenue from continuing operations totaled €75.9 billion and income from continuing operations €4.2 billion. At the end of September 2013, Siemens had around 362,000 employees worldwide on the basis of continuing operations. Further information is available on the Internet at: http://www.siemens.com.
Contact
Alexander Becker
Siemens AG
Wittelsbacherplatz 2
80333 Munich
Germany
80333 Munich
Germany
+49 (89) 636-36558