The EU announced Tuesday it had approved a deal under which US giant General Electric will acquire the energy business of French company Alstom for $12 billion, after Alstom agreed to sell some assets to an Italian rival.

"Following an in-depth review, the Commission has approved the acquisition of Alstom's energy businesses by General Electric subject to divestment of central parts of Alstom's heavy duty gas turbines business to Ansaldo," it said.