Europe News

Hitachi hopes to join Mitsubishi in bid for Alstom


Hitachi said it hopes to join Mitsubishi Heavy Industries and Siemens AG in their joint bid for Alstom SA's energy assets, which the Nikkei newspaper said would be worth 1 trillion yen ($9.80 billion).

A three-party bid would give the group greater financial firepower and flexibility to counter a rival $17 billion bid for the French company's power business by General Electric.

Read MoreAlstom shares rocket as it denies GE takeover talk

Chris Ratcliffe | Bloomberg via Getty Images

Hitachi and Mitsubishi Heavy are no strangers to each other. They merged their thermal power businesses at the start of this year.

"Mitsubishi Heavy is our partner. We want to work together with them," Katsumi Nagasawa, head of Hitachi's power systems group, told a briefing on Hitachi's business on Thursday. He said the joint Siemens-Mitsubishi Heavy bid was "great news".

Read MoreFrench govt gets more time to review GE/Alstom deal

The Nikkei said earlier on Thursday that the two Japanese companies would set up a joint venture to bid for Alstom's steam turbine operations, which it said would be valued at 500 billion yen ($4.90 billion).

Mitsubishi Heavy would hold 65 percent and Hitachi 35 percent of the venture, matching the shareholdings in their existing thermal power partnership, the paper added.

Siemens is expected to offer 500 billion yen for Alstom's gas turbine business, while Alstom's power grid business would be excluded from the deal, the Nikkei said.

Follow us on Twitter: @CNBCWorld