Canada

Rail Division of Bombardier to Be Sold to Alstom

Bombardier

French company Alstom announced last month it had agreed to buy the rail division of Bombardier, speeding up the Canadian firm’s fire sale. Alstom will pay up to €6.2 billion in a mix of cash and shares, according to a memorandum of understanding between the firms.

The acquisition stood to boost Alstom’s presence in markets where Bombardier is strong – notably Germany, Britain, North America – and also in China where the Canadian company’s position is “unique”, he said. Analysts said the French company hopes to add scale in a sector where China’s state-owned CRCC is the world’s largest rolling stock manufacturer.

Alstom’s move comes a year after the European Commission blocked an attempt at a mega-merger of its rail activities with those of Germany’s Siemens, which would have created a European rail champion.