"The combination of the very complementary energy businesses of Alstom and GE would create a stronger entity, best placed to serve customers globally and invest in people and technology over the long run," Alstom chief executive Patrick Kron said.

"Alstom would be associated to this ambitious combination through the energy alliances."

Kron now has to consult with the company's work councils, and then the transaction will be subject to merger control and other regulatory clearances.

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