New York: The European Union has approved a deal under which General Electric will acquire the energy business of French company Alstom for USD 12 billion, a source close to the transaction said Monday.
In order to win the green light from the European Commission, GE had to make concessions, the source said.
EU anti-trust regulators had expressed concern the deal could lead to too much concentration in the gas-turbine sector.
A formal announcement is expected tomorrow, the source said.
Approval would end months of uncertainty and tension over the proposed deal, part of a drive by the American conglomerate to stake more of its future on industrial operations.
With the same goal GE is trying to sell its appliances business to Sweden's Electrolux for USD 3.3 billion.
But the US Department of Justice filed a lawsuit in July to block the Electrolux deal on grounds it would lead to higher prices of key cooking appliances for US consumers.
The GE-Alstom deal had already been approved by the boards of both companies and by the French government.
The Commission had set September 11 as the deadline for it to announce a decision on the GE acquisition, another source told AFP.
The announcement tomorrow will also involve a press conference by EU Competition Commissioner Margrethe Vestager, the source said.
Officials at the Commission and General Electric declined to comment to AFP.
