GE Vernova

Last updated

GE Vernova Inc.
Company type Public
Industry Energy
Predecessors General Electric
FoundedApril 2, 2024;6 months ago (2024-04-02)
Headquarters Cambridge, Massachusetts,
U.S.
Key people
RevenueIncrease2.svg US$33.2 billion (2023)
Increase Negative.svgUS$(0.9) billion (2023)
Increase Negative.svgUS$(0.4) billion (2023)
Total assets Increase2.svgUS$46.1 billion (2023)
Total equity Decrease2.svgUS$7.4 billion (2023)
Number of employees
80,000 (2024)
Subsidiaries
Website gevernova.com
Footnotes /references
[1]

GE Vernova Inc., [2] formerly GE Power and GE Renewable Energy, is an energy equipment manufacturing and services company headquartered in Cambridge, Massachusetts. [3]

Contents

GE Vernova was formed from the merger and subsequent spin-off of General Electric's energy businesses in 2024: GE Power, GE Renewable Energy, and GE Digital.

History

Founding of GE Power

GE Power was founded as GE Energy, and was a division of General Electric. GE Energy was headquartered in Atlanta, Georgia. [4] GE Energy was founded in 2008, as part of a company-wide reorganization prompted by financial losses lead to the formation from GE Infrastructure division. [5]

In 2012, General Electric's GE Power division was created following the spin-off of GE Energy. [6]

Acquisition of Alstom's energy business

Between April and June 2014, General Electric entered into negotiations to acquire the energy business of the French group Alstom. On April 24, 2014, the first information was published about General Electric's partial takeover of Alstom for $13 billion. [7] On April 30, Alstom's board of directors accepted General Electric's €12.35 billion offer, for its energy business. [8] General Electric confirmed its offer of $16.9 billion. [9]

A wind turbine GE-Alstom Haliade 150 [fr]-6MW in 2017. GE-Alstom 150-6MW nacelle at Osterild, 2017.jpg
A wind turbine GE-Alstom Haliade 150  [ fr ]-6MW in 2017.

In 2015, the Franco-American subsidiary GE Renewable Energy was created from the acquisition of the energy activities (Alstom Power and Alstom Grid) of Alstom, which specializes in renewable energies. It was headquartered in Boulogne-Billancourt, France and focused on the production of energy systems that use renewable sources. Its products included wind (onshore and offshore), hydroelectric and solar (concentrated and photovoltaic) power generating facilities. [10]

In January 2016, General Electric announced that it was cutting 6,500 jobs in its energy division, GE Power. [11] In October 2016, General Electric announced the acquisition of LM Wind Power, a Danish company that is one of its main suppliers of wind turbine blades, for $1.65 billion. [12]

In May 2018, Alstom announced the sale of its interests in its three joint ventures with General Electric to GE for €2.594 billion. These joint ventures were active in the power grid, nuclear and renewable energy sectors. [13]

In July 2018, one month after buying all the shares in its joint venture with Alstom, General Electric announced a restructuring plan for the Hydro division, cutting 1,330 jobs worldwide, including 293 jobs in Grenoble, France even though GE had committed to creating 1,000 jobs in France when it bought Alstom's energy division. [14] [15]

On April 18, 2021, GE Steam Power's management announced that it was reducing its job cuts plan, deciding to save 94 jobs and thus cut 144. [16] On April 30, 2021, the unions in France announced that they would continue to blockade the steam power site in Belfort "for as long as necessary", also blocking the special convoy transporting a turbine to the Hinkley Point nuclear power plant in the UK. [17]

Spin-off

On November 9, 2021, General Electric announced that it would split into three publicly traded companies. The following year, they announced the names would be GE HealthCare, GE Aerospace, and GE Vernova. [18] GE Healthcare was the first to be spun off, on January 4, 2023. [19] GE Vernova was the second to be spun off. In preparation for the spin-off, GE Vernova, LLC was founded on February 28, 2023. [20] The LLC was incorporated on April 2, 2024, [21] as GE Vernova Inc. and was listed on the New York Stock Exchange under ticker symbol GEV. [22] After the completion of the two spin-offs, General Electric rebranded itself GE Aerospace. [23] [24]

Sale of almost all its nuclear activities

In January 2022, France's EDF and General Electric agreed on a takeover of a major part of GE Steam Power (formerly Alstom Power), GE Power's nuclear activities. EDF will pay around €175 million for this transaction, once the cash and debt of the acquired business have been taken into account. This former Alstom Power business, valued at one billion euros, specialises in nuclear turbine-generator sets, in particular " Arabelle", and the maintenance services associated with the reactors deployed. The Arabelle nuclear turbine at Belfort, France is the most powerful in the world. [25] It sold this subsidiary to EDF in May 2024. [26]

Structure

As of April 2, 2024, GE Vernova is organised into four divisions based in the United States, France and Denmark:

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References

  1. ↑ "GE Vernova Registration Statement (Form S-1)". U.S. Securities and Exchange Commission. March 13, 2024. pp. 149, F-4, F-6. Retrieved April 2, 2024.
  2. ↑ "EX-99.1". www.sec.gov. p. 3. Retrieved April 1, 2024.
  3. ↑ Rulison, Larry. "Seat of power at GE Vernova moving out of New York". Times Union. Retrieved March 31, 2024.
  4. ↑ GE Company Organization Chart Archived February 15, 2010, at the Wayback Machine
  5. ↑ axcontrol (January 27, 2020). "A History of GE Speedtronic Turbine Control". AX Control, Inc. Retrieved April 1, 2024.
  6. ↑ Linebaugh, Kate (July 20, 2012). "GE Shake-Up Will Audition New Leaders" . The Wall Street Journal. Retrieved October 29, 2015.
  7. ↑ "General Electric Said in Talks to Buy France's Alstom", Aaron Kirchfeld, Matthew Campbell and Jeffrey McCracken, Bloomberg, April 24, 2014.
  8. ↑ "Alstom is considering the proposed acquisition of its Energy activities by GE and the creation of a strong standalone market leader in the rail industry". Alstom. 2014. Archived from the original on September 19, 2015.
  9. ↑ "GE offers $13.5 billion enterprise value to acquire Alstom Thermal, Renewables, and Grid businesses". General Electric. April 30, 2014. Archived from the original on November 29, 2018.
  10. ↑ "University of Nebraska". June 2023.
  11. ↑ GE veut supprimer 6.500 postes dans l'ex-pôle énergie d'Alstom, Veronique Le Billon, Les Échos, 13 janvier 2016
  12. ↑ GE to buy wind turbine rotor blades maker for $1.65 billion, Reuters, 11 octobre 2016
  13. ↑ "Alstom signs $3 billion agreement with GE to exit energy joint ventures". Reuters. May 10, 2018.
  14. ↑ https://www.usinenouvelle.com/article/ge-hydro-reduit-un-peu-moins-les-vannes-a-grenoble.N697324 GE Hydro réduit un peu moins les vannes à Grenoble
  15. ↑ https://www.liberation.fr/france/2018/10/14/un-an-apres-les-salaries-de-ge-hydro-ont-le-moral-a-zero_1684944 Un an après, les salariés de GE Hydro ont le moral à zéro
  16. ↑ "A Belfort, General Electric revoit à la baisse son plan social chez Steam Power". LeMonde.fr. April 18, 2021. Retrieved May 2, 2021.
  17. ↑ "Belfort. Le blocage se poursuit chez GE Steam Power et sera reconduit "tant que ce sera nécessaire", annoncent les syndicats". estrepublicain.fr. Retrieved May 2, 2021.
  18. ↑ "Commentary: Corporations break themselves up all the time. So why shouldn't regulators break up Big Tech?". Fortune. Retrieved March 28, 2024.
  19. ↑ Gryta, Thomas. "General Electric Sets Healthcare Division Spinoff Plans". WSJ. Retrieved March 31, 2024.
  20. ↑ "EX-99.1". www.sec.gov. p. 17. Retrieved April 1, 2024.
  21. ↑ Cornell, Joe. "General Electric To Split Into Two On April 2". Forbes. Retrieved March 28, 2024.
  22. ↑ "GE Board of Directors Approves Spin-Off of GE Vernova". Yahoo Finance. March 4, 2024. Retrieved March 27, 2024.
  23. ↑ Pound, Jesse (November 9, 2021). "GE to break up into 3 companies focusing on aviation, health care and energy". CNBC . Archived from the original on November 10, 2021. Retrieved November 9, 2021.
  24. ↑ Ganapavaram, Abhijith; Singh, Rajesh Kumar (November 9, 2021). "GE, an industrial conglomerate pioneer, to break up". Reuters. Archived from the original on November 9, 2021. Retrieved November 9, 2021.
  25. ↑ Marleix, Olivier (January 17, 2018). "Compte rendu No. 12 | Commission d'enquête chargée d'examiner les décisions de l'État en matière de politique industrielle, au regard des fusions d'entreprises intervenues récemment, notamment dans les cas d'Alstom, d'Alcatel et de STX, ainsi que les moyens susceptibles de protéger nos fleurons industriels nationaux dans un contexte commercial mondialisé". Assemblée nationale (in French). Retrieved February 10, 2022.
  26. ↑ "GE Vernova completes sale of portion of Steam Power activities to EDF | GE Vernova News". www.gevernova.com. Retrieved June 1, 2024.
  27. ↑ "L'entreprise dérivée de GE dans le domaine de l'énergie espère des jours meilleurs pour l'éolien en mer". Boursorama (in French). March 6, 2024. Retrieved April 4, 2024.
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