German conglomerate Siemens is getting closer to making its formal offer for the French company Alstom.
According to Reuters, Siemens is expected to offer less than EUR 7 billion, which is almost a half of what GE is offering, together with its train business for Alstom’s energy business.
Previously, it was believed the company’s cash component would be around EUR 10.5 billion. The reduction follows a decision to exclude Alstom’s wind, nuclear and distribution businesses from the bid.
The German company is also looking to form a joint venture in rail signalling.
Siemens has until the 23rd of June to make an offer as GE has prolonged its EUR 12.35 billion bid.
If the deal with Siemens goes through, it will create two European giants, one in power and one in transport.