Schneider Electric and Alstom signed the agreement for the acquisition of Areva T&D

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Alstom and Schneider
Electric signed today the agreement with Areva for the acquisition of Areva
T&D, its transmission and distribution business. This agreement comes as a
result of the exclusive negotiations that started on November 30, 2009 and
after the completion of the consultation of the relevant employee
representatives.

The closing of the transaction remains subject to the approvals of the
relevant competition authorities and of the French Commission des
Participations et des Transferts (CPT), and is expected to occur in Spring
2010. Alstom and Schneider Electric intend to build on the quality of the first
contacts established with the Areva T&D management in order to jointly
prepare the future.

Background

The Areva Supervisory Board of 30 November 2009 announced its decision
to enter into exclusive negotiations with Alstom and Schneider Electric for the
acquisition of the activities of its transmission and distribution business,
Areva T&D.


According to the proposed integration of Areva T&D’s activities,
currently number three worldwide, with Transmission moving to Alstom (around
two thirds of the business) and Distribution to Schneider Electric (about one
third), would transform Schneider Electric and Alstom into two of this market’s
global leaders.


Alstom and Schneider Electric have undertaken strong commitments towards Areva
T&D’s employees to guarantee their professional future and offer them the
best opportunities to develop their skills in the long term.


Within Alstom, the employees of Areva Transmission will form a third sector,
alongside Power and Transport.


Alstom and Schneider Electric have submitted a bid which maximises the value of
Areva T&D. They propose jointly acquiring Areva T&D for an equity value
of €2,290 million. On 30 June 2009, the net debt of Areva T&D was around
€1,050 million.


After the closing of the transaction, Schneider Electric and Alstom plan to
acquire the shares of Areva T&D via a joint legal vehicle, from which the
activities will then be progressively transferred to Schneider Electric and
Alstom.