New York (CNN Business)General Electric’s beleaguered power business scored a badly needed win by reaching a preliminary agreement to rebuild Iraq’s war-torn electric grid.
GE gets a badly needed win in Iraq
Germany’s Siemens (SIEGY) also signed a nonbinding agreement with Iraq, setting the stage for the two rivals to compete over a final contract worth a reported $15 billion.
The news is a victory for GE (GE) because Siemens was the frontrunner to land the milestone deal by itself. Both companies have been hurt from the shift away from fossil fuels in favor of solar, wind and other renewable energy. GE and Siemens have laid off thousands of power workers. GE recently ousted its CEO and warned of more financial pain from its power division.