Business Alstom acquires Bombardier Transportation for € 7 billion

Alstom acquires Bombardier Transportation for € 7 billion

-

Berlin (awp / afp) – French railroad builder Alstom will buy Bombardier’s rail business for seven billion euros, German business daily Handelsblatt said on industrial sources.

This decision, which should be formalized Thursday morning when the Canadian aircraft manufacturer’s 2019 results are announced, would allow Bombardier to partially reduce its colossal debt.

Contacted by AFP, the two companies did not want to comment on this information.

With this acquisition of its transport branch, whose division is headquartered in Berlin and employs around 1,500 people in Quebec, Alstom will form a new large group in the rail sector with a turnover of around 15 billion euros, according to the daily economic.

Only a year ago, Alstom had failed in its attempt to merge with Siemens Mobility because of the refusal of the European Commission which estimated that this merger would place the new group in a position of too strong domination of the competition.

The Bombardier Transportation branch, however, represents more than two-thirds of the Canadian automaker’s order book, which, weighed down by a colossal debt of more than US $ 9 billion (8.2 billion euros), is forced to sell part of its major assets to stay alive.

For weeks, the Montreal-based group has been at the heart of recurring market rumors about the possible sale of its rail division to Alstom or another competitor, or that of business aircraft to the American manufacturer Textron.

The Canadian company still remains active in aircraft construction, but it has also encountered great difficulties there and has already partially sold its new C series to Airbus.

afp / rp

.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest news

The US market registers negative oil prices

The fall in demand for oil in the US market forces some producers to pay for unloading their warehouses,...

A young man dies after being rejected in the emergency department for not having insurance, according to its mayor

A 17-year-old boy who died in California of problems possibly linked to the coronavirus last week was seen denied...

Banks asked to reopen the public in the coming days, but the BCRA refuses and prioritizes directives from the Ministry of Health.

The BCRA received an order from the banks so that they can reopen in the coming...

Corona virus in Switzerland – +++ stranded Swiss are being brought back from Peru +++ Berset anticipates a longer crisis

Yesterday, 5:36 pmSwiss Post is currently busy. The company is flooded with parcel shipments. This was explained by Post...

Must read

You might also likeRELATED
Recommended to you