BRUSSELS--The European Union threw down a hurdle to General
Electric Co's (GE) planned $17 billion acquisition of France-based
Alstom SA's (ALO.FR) energy unit Monday, saying it would open an
in-depth investigation into whether the deal might stifle
competition.
The European Commission, the EU's 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.
EU authorities regularly open in-depth probes to assess specific
aspects of large deals, and the commission stressed that the move
didn't pre-judge the outcome of its investigation. It will make a
final decision on the merger by July 8.
"We are concerned that the proposed acquisition might not only
lead to higher prices but also result in less choice for customers
and less innovation in the sector," EU antitrust chief Margrethe
Vestager said in a statement.
Alstom 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.
Write to Tom Fairless at tom.fairless@wsj.com
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