The French manufacturer has concluded an agreement with the Canadian group to resume its railway activities. The announcement is expected to be formalized on Monday, February 17.
After the marriage with Siemens’s transportation industry breaks down, Alstom is expected to take comfort in marrying Bombardier’s rail business. According to Wall street journal, the French train manufacturer has signed an agreement with the Canadian.
Seven billion euros
Alstom (35,000 employees, 8 billion in turnover) had met on Wednesday, February 12, its board of directors to examine such a takeover. The rumor has been around for a while. According to the German economic daily Handelsblatt, the transaction amount would be 7 billion euros.
Bombardier Transportation’s trains and subways account for more than half of the Canadian group’s sales ($ 16 billion). They are sold in more than 60 countries to 500 customers.
Leaded by a debt of 10 billion dollars (9.2 billion euros), Bombardier (64,000 employees), which mainly manufactures planes and trains, needs to reassure its investors. Quebecer struggling to recover from failed launch of medium-haul aircraft CSeries, became in 2018 A220 when Airbus took control. Additional cost of the development program, extended tests, orders below forecast… the plane was barely saved, thanks to an extension from the Quebec government.
The endorsement of the European Commission
The resumption of Bombardier’s rail activity (turnover of 7.5 billion euros) has yet to be approved by the European Commission. For the record, she was the one who opposed the marriage of the French Alstom to the German Siemens, a year ago, in order to protect the game from competition. Bombardier may be Canadian, but most of its rail activities are located in Europe, mainly in northern France and Germany. Their headquarters are in Berlin.
Alstom acquires Bombardier trainsOuest-France.fr