Under the Alstom-Bombardier Transportation deal, the French company will submit its commitments to respond European Commission’s concerns. The decision was taken in coordination with Bombardier Transportation and the Caisse de depot et placement du Québec (CDPQ). On 11 June 2020, the Commission received the notification on the transaction.
Alstom has published four commitments subject to the EC’s approval which pave the way towards closing the transaction.
They include:
- A transfer of Bombardier Transportation’s contribution to the V300 Zefiro very high-speed train, which is manufactured in partnership with Hitachi Rail
- The divestment of the Alstom Coradia Polyvalent and the Reichshoffen production site in France
- The divestment of the Bombardier Talent 3 platform and dedicated production facilities located within the Hennigsdorf site in Germany
- Providing access to certain interfaces and products for some of Bombardier Transportation’s signalling on-board units and train control management systems (TCMS)
According to Alstom, the divestitures will comply with all applicable social processes and consultations with employee representatives’ bodies.
According to the DG Competition, there are four concerns related to the economic activities which include the manufacture of the electrical equipment, other transport equipment, locomotives and rolling stock and service activities incidental to land transportation.
In February, Alstom has signed a MoU with Bombardier and CDPQ for the acquisition of 100% shares of Bombardier Transportation for EUR 5.8-6.2 billion. Under the transaction, CDPQ, which owns 32.5% stake in Bombardier Transportation, will become Alstom’s largest shareholder with 18% of capital. CDPQ will reinvest EUR 2 billion in Alstom, corresponding to the 100% cash proceeds to be received from the sale of its stake in Bombardier Transportation, and will invest additional EUR 700 million. Bouygues, which is fully supportive of the transaction, will remain a shareholder in Alstom with around 10% of capital.
The Alstom-Bombardier Transportation deal is expected to be completed in the first half of 2021. If approved, the acquisition will propel Alstom the world’s second largest railway equipment manufacturer by revenue.
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