FRENCH engineering giant Alstom’s board announced its unanimous approval today of a $17 billion (£10bn) offer by US multinational General Electric (GE) to buy its power generation business.

GE said that, if shareholders and workers’ representatives approve, the deal to buy Alstom’s gas and steam turbine-making operations would be tied up next year.

Paris finally dropped its objections to the deal, for which GE has fought for months, after receiving assurances on employment and decision making on Friday.

But the deal is still subject to the French government buying a 20 per cent stake in Alstom, which is expected soon.

President Francois Hollande said that the government expected rapid progress on the talks, adding: “This is a major condition for the government’s acceptance of the alliance.”

The deal also involves a GE agreement to sell its railway signalling business to Alstom for about $825 million (£485m).