Siemens and Mitsubishi consider joining forces for Alstom

German and Japanese industrial groups confirm they are in talks about a potential joint bid for France's Alstom energy assets

Japan’s Mitsubishi has entered the fray in the latest twist in the takeover tussle for French industrial group Alstom, by confirming it is in discussions about a potential joint bid with Siemens.

US rival General Electric has already had a $16.9bn bid for Alstom’s energy business accepted by the French company’s board. However, Parisian political intervention has forced the door to be kept open for Siemens to make rival offer.

Siemens and Mitsubishi said in a joint statement on Wednesday they would decide on a proposal to Alstom's board of directors by Monday next week. Siemens had already set a self-imposed deadline of June 16 to make a bid.

"We firmly believe that we can substantially contribute to a partnership solution for Alstom which will create value for all parties involved, including the country of France," Mitsubishi Heavy chief executive Shunishi Miyanaga said in the statement.

Joe Kaeser, president and chief executive of Siemens said: "I appreciate Mitsubishi's commitment to join our efforts and I do look forward to working together with them to create a long-term oriented solution for Alstom, Mitsubishi Heavy Industries and Siemens".

One option being discussed is for Mitsubishi to bid for Alstom’s steam and grid business, while Siemens would acquire the company’s gas turbine operations, according to reports.

This would help alleviate any competition concerns that could arise from Siemens taking control of all of Alstom's energy operations.

However, the main strength of Siemens’ argument to date is that it would provide a “European” alternative to American powerhouse GE's offer. A tie-up with Japan's Mitsubishi could potentially weaken this argument.

Any joint offer would also have to trump GE’s proposal to create 1,000 new French jobs within three years of a deal. The workforce commitments soothed even the notoriously outspoken French economy minister Arnaud Montebourg, who softened his opposition to the US takeover and admitted the proposal was much “improved”.

GE has extended its offer until June 23 to allow negotiations with the French government to continue.