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