German company Siemens and Tokyo-headquartered Mitsubishi Heavy Industries (MHI) have joined forces in making a play for France-headquartered conglomerate Alstom’s energy assets, six weeks after General Electric (GE) submitted a €12.35-billion binding offer.

Siemens and MHI this week tabled a proposal for certain assets belonging to the French multinational – countering GE’s bid for Alstom’s thermal, renewable and grid power sectors, as well as its related corporate and shared services – in an effort to “strengthen the future position” of Alstom, MHI and Siemens.

MHI's aim was to create three joint ventures with Alstom after offering to buy 40% of Alstom's steam and nuclear business and acquire 20% stakes in both the grid and hydro businesses.

As a “broad industrial alliance” was formed, MHI would inject €3.1-billion in cash into Alstom.

The Japanese company, which emphasised the benefits of the transaction to Alstom employees, believed the partnership would enable the creation of 1 000 jobs in France.

“I believe our collaboration with Alstom in the turbine business will give birth to another Japan-France alliance with superior technological expertise, which will be able to address the needs of emerging nations. In thermal power generation, use of high-efficiency combustion technology for globally abundant low-grade coal is poised to grow,” explained MHI president and CEO Shunichi Miyanaga.

MHI also intended to acquire a 10% stake in Alstom through an acquisition of shares from Alstom shareholder Bouygues.

Meanwhile, Siemens planned to acquire 100% of Alstom's gas business, including related service contracts for €3.9-billion in cash, offering a three-year job guarantee in France and Germany for the transferred business after the closing of the transaction. Siemens would also establish its European headquarters for the combined gas service business in France.

"This transaction would further enhance our value chain of electrification by expanding our installed base in gas. This fits well into Siemens – Vision 2020 to strengthen our core activities,” said Siemens president and CEO Joe Kaeser.

The company also aimed to explore opportunities with Alstom for the potential creation of a “European rail champion”.

“This move would be a win-win solution for all related parties. Alstom would remain an independent energy and transport player with a strong brand. Its energy business would be strengthened through the partner[ship] with MHI … ,” said Kaeser.

Alstom previously noted that the proceeds from the sale of its energy assets would be used to cement its transport unit as an ambitious standalone business, pay down its debt, return cash to its shareholders and leave the company with a strong balance sheet able to capitalise on opportunities in the dynamic rail transport market.