BREAKING: Alstom Completes Acquisition of Bombardier Transportation

A Growing Market

Alstom estimates that the rail manufacturing market will grow at a 2.3 percent CARG by 2025, saying that the rail market was supported by fundamental growth drivers such as accelerated urbanisation and an international push towards making transport systems both greener and more digital.

An Increased Reach

By incorporating Bombardier Transportation, Alstom says it will now have an unparalleled commercial reach in all geographies, because the two companies had been complementary in this respect. Alstom’s established base was France, Italy, Spain, India, South East Asia, Northern Africa and Brazil, while Bombardier Transportation had a focus on the United Kingdom, Germany, the Nordics, China, and North America. The Group will have a very strong position in the European and North American markets, which it says make up around 75 percent of the OEM accessible market.

Alstom’s Americas headquarters will be located in Montréal, Quebec.


Alstom says it aims to generate 400 million euros in cost synergies an annual run rate basis by years 4–5 and to restore Bombardier Transportation’s margin to a standard level in the medium term.

CDPQ (Caisse de dépôt et placement du Québec) has become Alstom’s main shareholder (17.5 percent of Alstom’s share capital). Bouygues now holds approximately 6 percent of Alstom’s share capital.


The reference price was set at 5.5 billion euros at the bottom range of 5.5–5.9 billion euros, as announced on 16 September 2020. The proceeds for the acquisition were established at 4.4 billion euros. These include the impact of the minimum cash adjustment mechanism based on a negative net cash position of Bombardier Transportation as of 31 December 2020 and other further contractual adjustments for an amount of 1.1 billion euros.

Alstom will now pursue and finalise sales of a number of assets as set out by the European Commission.