The prospect of the current GE Hitachi president and CEO leaving for another position within GE is looking more likely, now that the company’s proposed deal with a French company looks like a go.
If GE’s planned acquisition of the energy assets of France-based Alstom is approved by European Commission officials, Caroline Reda would leave the Wilmington plant to become head of GE’s Power Generation Services Group’s North American division, GEH spokesman Christopher White said Wednesday. Her planned successor at GE Hitachi, according to White, is Jay Wileman, who is currently COO of GEH and senior vice president of GE Hitachi’s New Plants Group. Wileman has been at GE Hitachi for several years in preparation for just such a succession.
Among Alstom’s products is a very efficient type of steam turbine used in nuclear reactors.
Alstom’s sale of its energy assets to GE has been “one of the most closely watched industrial deals in Europe,” according to a
story Tuesday in the Financial Times, which added that the European Commission “raised concerns that [the deal] would damage competition in the market for massive turbines used to generate electricity from gas-fired power stations.”
GE’s tactful approach to negotiations and willingness to make some concessions have made it likely that the $14 billion sale will go through, the Financial Times story stated, adding that the government of French president François Hollande “is now investing diplomatic capital in ensuring the deal goes ahead to keep jobs in France.”
On Wednesday,
Reuters reported that Alstom’s stock was up 3 percent after Tuesday’ Financial Times story appeared .
The acquisition’s interested parties are optimistic about approval from the European Commission, the executive body of the European Union, according to international media sources.
If approved, White said, the deal would probably close sometime this fall.
“If the deal goes through, collaboration would occur across GE, including Alstom’s energy assets, to enhance our very strong offerings to the industry,” White said, adding that there could possibly be some adjustments in GE’s current offerings.
The fact that GE Hitachi identified a successor for Reda earlier this year is a “good example of GE’s normal succession planning,” and evidence of the company’s “deep bench of experts,” White said. “It should be a seamless transition.”
Until the acquisition is complete, however, Reda will continue to lead GE Hitachi and both Reda and Wideman will stay very focused on their current roles, White said.