Chinese rail equipment manufacturer CRRC Corp recent unveiling of a plan to buy new shares in China Properties Investment is said to pave the way for it to acquire a stake in Bombardier’s rail business.
Commenting on CRRC’s plan to buy a stake in the investment company, a source close to CRRC said that CRRC’s plan to invest in China Properties Investment is part of its ambitions to go global, including taking a controlling stake in Bombardier’s rail business.
China Properties Investment announced that CSR Hong Kong plans to acquire a controlling stake of 6.5 billion new shares in China Properties Investment at HK$0.10 (US$0.01) per share.
In April it was reported that CSR and CNR were in talks with Bombardier on buying a controlling stake in its train business and said the acquisition will be pushed after the merger is completed.
CRRC was officially launched on 1 June after the merger of China South Locomotive & Rolling Stock (CSR) Corp and China CNR Corp.
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