MoneyNewsWorld

Alstom acquires Bombardier rail subsidiary for € 7 billion

UNITED STATES (OBSERVATORY NEWS) — The railway manufacturer Alstom will buy the railway subsidiary of the Canadian company Bombardier for seven billion euros. Bombardier Transportation was experiencing great financial difficulties, with debt amounting to more than eight billion euros.

The rolling stock manufacturer Alstom, based in Saint-Ouen in France, will buy all the railway activities of the Canadian company Bombardier for seven billion euros, said the German economic daily Handelsblatt, which refers to industrial sources.

Although the two groups have not yet communicated on the matter, the transaction is expected to be formalized on Thursday, February 13.

Bombardier Transportation, which represented more than two-thirds of the Canadian company’s order book, was in a difficult situation, with debt estimated at nine billion dollars (8.2 billion euros). The merger of these two large companies will generate turnover of around 15 billion euros, according to the German daily.

Since this announcement, the Bombardier group’s shares have risen 8%. The railway subsidiary is headquartered in Berlin and employs 40,000 people in 27 countries. Its business aircraft subsidiary would arouse the interest of the American Textron.

Bombardier previously sold its Cseries commercial aviation program to Airbus in 2018.

Failure to merge with Siemens

On February 6, 2019, the European Commission blocked the merger between Alstom and Siemens, which believed that it would cause competition concerns on the European market.

Bruno Le Maire deplored that Brussels does not allow the creation of a large European group in the rail sector to oppose the Chinese leader “China Railroad Stock Corporation”. The Minister of Economy had indicated that this decision would “serve the economic and industrial interests of China”.

Online:

This article is written and prepared by our foreign editors writing for OBSERVATORY NEWS from different countries around the world – material edited and published by OBSERVATORY staff in our newsroom.

Our Standards, Terms of Use: Standard Terms And Conditions.

OBSERVATORY

Contact us: contact@newsobservatory.com

Stay connected with Observatory and Observatory Newsroom, also with our online services and never lost the breaking news stories happening around the world.

Tags
Close