ABB and ALSTOM Create World Leader in Power Generation.BRUSSELS/ZURICH/PARIS--(BUSINESS WIRE)--March 23, 1999-- -- A major consolidation in the power generation industry -- Massive base for breakthrough R&D -- Successful track record in merging cultures ABB n. 1. Among weavers, yarn for the warp. Hence, Noun 1. ABB - an urban hit squad and guerrilla group of the Communist Party in the Philippines; formed in the 1980s and ALSTOM today announced the merger of their power generation businesses in a 50-50 joint company, to be called ABB ALSTOM POWER. The new company will employ some 54,000 people in more than 100 countries. Among the world leaders For a list of heads of state, see . World leaders is a MMORPG. The game involves creating a state, joining an alliance and going into war. It is mostly played by players from Israel, China, USA, Britain, Brazil and Saudi-Arabia. in all its businesses, ABB ALSTOM POWER's 1998 pro-forma revenues amount to about US$ 11 billion (E 9.9 billion) (US$ 8 billion/E 7.2 billion from ABB and US$ 3 billion/E 2.7 billion from ALSTOM). In a steadily growing market, the new company can better respond to the changes and opportunities created by privatization privatization: see nationalization. privatization Transfer of government services or assets to the private sector. State-owned assets may be sold to private owners, or statutory restrictions on competition between privately and publicly owned and deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. , thanks to the complementary product ranges, geographic scope and R&D capabilities of its parent companies. In 1998 pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma figures, ABB ALSTOM POWER invested about US$ 700 million (E 630 million) in total R&D, equivalent to 6-7 percent of revenues. Improvements in efficiency and productivity and economies of scale are expected to yield synergy The enhanced result of two or more people, groups or organizations working together. In other words, one and one equals three! It comes from the Greek "synergia," which means joint work and cooperative action. effects of about US$ 450 million (about E 400 million) annually within 3-4 years. The merger is subject to the customary approvals. "To be a successful leading player in this demanding and dynamic market you need a comprehensive range of products and solutions, a commitment to technological renewal, and global presence. This capability mix, coupled with economies of scale, will enable competitive cost levels," said ABB President and Chief Executive Officer Goran Lindahl. "We are convinced that ABB ALSTOM POWER will be successful. It will, in short, be the most complete power generation company in the world." "Technological breakthrough is key to anticipate customer demands and ensure long-term profitable growth," said Pierre Bilger, Chairman and Chief Executive Officer of ALSTOM. "The joint company will be a strong R&D powerhouse A fourth-generation language from Cognos that was introduced in the late 1970s for midrange computers. It supports both character-oriented, terminal-based applications as well as Windows clients. Applications developed under PowerHouse can be imported into Cognos' Axiant client/server environment. . ABB ALSTOM POWER will benefit from its parent companies' proven capabilities to successfully integrate businesses from different cultures. In return, this move will be a strong accelerator for the performance of both parent companies." The new company will comprise all of ALSTOM's Energy Sector activities, including industrial gas turbines but excluding the General Electric-based heavy duty gas turbine business (above 20 megawatts), which ALSTOM is divesting to GE. ABB ALSTOM POWER will also comprise all of ABB's Power Generation Segment, excluding its nuclear activities - today mainly fuel processing and service - and its service- and financing-based distributed power business. To compensate for the difference in the size of the contributed businesses, ABB will receive a cash compensation from ALSTOM of US$ 1.5 billion (E 1.4 billion). Considering the strong balance sheet of the new joint company, ABB and ALSTOM do not foresee fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. any need for further capital injections. The President and Chief Executive Officer of the new company will be Claude Darmon, presently Deputy CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of ALSTOM. The Management Board will initially have 2-3 other members and may be expanded later. A separate announcement will be made in due course. The Chairman of the Supervisory Board Supervisory board The board of directors that represents stakeholders in the governance of the corporation. will be Goran Lindahl, President and CEO of ABB. The new company's Supervisory Board will consist of six members, three designated by ABB and three by ALSTOM. ABB ALSTOM POWER will be registered as a Naamloze Vennotschap (N.V.) in the Netherlands and will consolidate its accounts in the euro, with the fiscal year matching the calendar year. The head office will be located in Brussels when operations begin, although management may later decide on another permanent location. In anticipation of the establishment of the new joint venture, management in the parent companies will immediately start planning the integration process. Over the next three years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time objective is to substantially increase the joint company's margins and to achieve above-average profitability. Note to Editors: Press Conference at 11:00 a.m. Central European Time Central European Time Noun the standard time adopted by Western European countries one hour ahead of Greenwich Mean Time, corresponding to British Summer Time Abbrev: (CET) Hilton Hotel -Brussels 38 Boulevard de Waterloo 1000 Brussels To register, please call: ABB Media Relations Tel. +41 (0)1 317 7406 ALSTOM External Communications Tel. +33 (0)1 47 55 25 87 For those unable to attend the conference, an interactive live internet broadcast will take place starting at 1100h. You can register and participate by visiting either the ABB or ALSTOM worldwide web sites at www.abb.com or www.alstom.com |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion