Alstom takeover of Bombardier is agreed

CANADIAN train and plane builder Bombardier is to be taken over by French train-builder Alstom.

In a statement issued late this afternoon, Alstom says it has: ‘signed a Memorandum of Understanding with Bombardier Inc. and Caisse de dépôt et placement du Québec in view of the acquisition of Bombardier Transportation. Post-transaction, Alstom will have a backlog of around €75bn and revenues around €15.5bn. The price for the acquisition of 100 per cent of Bombardier Transportation shares will be €5.8bn to €6.2bn, which will be paid via a mix of cash and new Alstom shares.’

Alstom chairman and CEO of Henri Poupart-Lafarge added: ‘I’m very proud to announce the acquisition of Bombardier Transportation, which is a unique opportunity to strengthen our global position on the booming mobility market. This acquisition will improve our global reach and our ability to respond to the ever-increasing need for sustainable mobility.

Bombardier Transportation will bring to Alstom complementary geographical presence and industrial footprint in growing markets, as well as additional technological platforms. It will significantly increase our innovation capabilities to lead smart and green innovation.

We will be thrilled to welcome all the talent and energy of Bombardier Transportation employees. We are deeply committed to step up the turnaround of Bombardier Transportation activities and deliver significant value to all stakeholders, particularly our customers.’

An Extraordinary General Meeting will be asked to approve the takeover by the end of October, but at least one large Alstom shareholder has already indicated that it will agree to the deal.

The transaction will also need approval from regulators, but Alstom said it expected the deal to be completed in the first six months of next year.

source= http://www.railnews.co.uk/news/2020/02/17-breaking-alstom-takeover-of-bombardier.html

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