Areva enters India via Alstom T&D arm buy

Areva, a ¤8.3 billion (approximately Rs 42, 330 crore) nuclear power and electronic connectors manufacturer, has quietly entered India through the acquisition of Alstom's worldwide transmission and distribution (T&D) business.

A top source in Alstom Ltd, the Indian arm of the French major Alstom, said the acquisition empowered Areva to take over T&D business of Alstom Ltd.

Areva, a French company, might rename the company after the acquisition and then transform it into a closely-held one.

"Being a nuclear power company, it runs its global operations through close-held subsidiaries," the source said indicating that the existing shareholders of Alstom Ltd would be given an exit option.

The motors division, another business of Alstom Ltd, will be transferred to Alstom Projects Ltd, another Alstom group company.

The procedural formalities, including legal documentations, are expected to be over within three months.

Areva is currently having presence in 30 countries, including Taiwan, Japan and China. The Rs 511-crore Alstom Ltd has been in the country from the beginning of the last century.

Its name and ownership was changed several times over the span of time. General Electric Company was amalgamated with English Electric. The merged entity later became GEC Alsthom which, due to change in foreign promoter, became Alstom Ltd.

Alstom's T&D business is having presence in numerous countries, including France, Germany, the UK, the US, India, the United Arab Emirates, Mexico, Brazil, Singapore and China.

The customers include utilities, industrials and value-added resellers. Alstom Ltd's T&D business, the main money spinner, has been doing well.

The motors business, however, has become a drag on the group's profitability.