HomeCompany NewsAlstom signs agreement to purchase Bombardier Transportation

Alstom signs agreement to purchase Bombardier Transportation

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The takeover of Bombardier Transportation by Alstom moved closer as Alstom announced that it signed the sale and purchase agreement with Bombardier Inc and Caisse de dépôt et placement du Québec (CDPQ). 

Henri Poupart-Lafarge, chairman and CEO of Alstom, said: “The acquisition of Bombardier Transportation represents a transformational change for Alstom. It will enable the Group to accelerate on its strategic roadmap and strengthen its leadership in the context of a dynamic market, at a time where sustainable transportation is at the heart of the global agenda.”

Bombardier Transportation will bring to Alstom complementary geographical presence to broaden Alstom’s commercial reach in key growing markets, strong product complementarities in rolling stock, strategic scale in services and signalling, industrial capacity in key countries, a leading portfolio offering and additional R&D capabilities to invest in green and smart innovation. Alstom will also welcome new talent and expertise, with the arrival of Bombardier Transportation employees.”

A €300m reduction in the price range has been agreed with Bombardier Inc and CDPQ. Excluding any further downward adjustments linked to the net cash protection mechanism, the price range for the acquisition of 100 per cent of Bombardier Transportation shares will be therefore €5.5 to €5.9 billion.

Following positive progress on antitrust regulation process, the closing of the transaction is now expected for Q1 2021 subject to regulatory approvals and customary closing conditions, with an extraordinary shareholders’ meeting to be held on October 29th 2020.

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