The French railway manufacturer Alstom announced on Wednesday the signing of the contract to acquire Canadian Bombardier Transport.
The transaction is expected to be completed in the first quarter of 2021, subject to regulatory authorizations and the usual prerequisites, the French group said in a press release.
This acquisition, which would mark the birth of the world number two in rail, represents a “transforming step” for Alstom, it was pointed out, noting that it will allow the Group “to accelerate on its strategic roadmap and strengthen its leadership in a dynamic market context, at a time when sustainable transport is at the heart of today’s concerns ”.
According to the same source, the terms of the agreement have been adapted to the current situation, with a reduction of 300 million euros in the price range agreed with Bombardier Inc and the Caisse de dépôt et placement du Québec (CDPQ).
Consequently, it is specified, and excluding any additional downward revision linked to the adjustment mechanism of the net cash position, the price range for the acquisition of 100% of the shares of Bombardier Transportation will be 5, 5 billion to 5.9 billion euros.
“The acquisition price should reach up to € 5.3 billion, after taking into account the estimated potential post-realization adjustments and obligations related to the mechanism to protect the net cash position, to be compared with the initial range of 5, € 8 billion to € 6.2 billion announced on February 17, 2020 ”, explains the French manufacturer.
Alstom says it is “confident in its ability to restore (…) the profitability of Bombardier Transport”, confirming its “objective of generating 400 million euros in cost synergies per year”.
The European Commission had conditionally authorized this takeover at the end of July, which took place a year and a half after the unsuccessful merger between Alstom and Siemens.