All the necessary regulatory approvals required to complete the Alstom’s acquisition of Bombardier Transportation have been received, the two companies announce. The transaction is expected to be closed on January 29, 2021.
In September Alstom announced the signing of the sale and purchase agreement (SPA) with Bombardier Inc and Caisse de dépôt et placement du Québec (CDPQ). Under the SPA, Bombardier and CDPQ sell their interests in Bombardier Transportation to Alstom on the basis of an enterprise value of EUR 7.15 billion, reflecting a EUR 300 million price reduction from the previously announced MoU, offset by the impact of a more favourable currency exchange rate.
The price has been revised considering the current context, with net proceeds expected at up to EUR 5.3 billion against a range of EUR 5.8 – EUR 6.2 billion previously agreed. The final purchase price amount will be determined on the basis of Bombardier Transportation’s accounting books as of 31 December 2020 and as of the transaction completion date and of the mechanisms set forth in the acquisition agreement.
In October, an amendment to the Universal Registration Document 2019/20 was filed with the French financial markets authority – Autorité des marchés financiers (AMF) that also approved the prospectus related to the reserved capital increases for the benefit of Bombardier and CDPQ. At the end of October, Alstom an extraordinary shareholders’ meeting approved all the resolutions of the transaction. The removal of doubled voting rights was also approved by a special meeting of holders of shares with double voting rights.
On 31 July 2020, the European Commission cleared the Alstom’s acquisition of Bombardier Transportation under some comprehensive remedies proposed by Alstom. The proposals were needed as the EC investigation found serious competition concerns on the very high-speed and mainline rolling stock as well as on mainline signalling segment.
Commission’s investigation found that the transaction, as initially notified, would have raised serious competition concerns on
In February 2020, Alstom entered an agreement on the acquisition of Bombardier Transportation.
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