Michael Sabia, CEO of Quebec’s Caisse de Depot, said Bombardier Inc. should look at all options for its transport business including partnering with China’s state-owned CRRC, Reuters reports. The Caisse de Depot, which invests on behalf of workers and retirees in the Canadian province of Quebec, took a 30% stake in Bombardier rail division in November 2015.
“I think we have to look at everything. Every opportunity that comes up ought to be looked at,” Michael Sabia said. Bombardier should consider a partnership with CRRC rather than selling the business to the Chinese, he explained. “I think the transport business is a long-run asset of Bombardier. I don’t see an opportunity or reason to go down the sale path,” he said.
With Siemens and Alstom merging their train manufacturing operations, Bombardier will be left competing in a market dominated by CRRC, the world’s largest train maker, and a combined Siemens and Alstom group as the second biggest.
The Finance Minister of France, Bruno Le Maire, said that Siemens and Alstom merger could be expanded to include also Bombardier, in order to create a company able to compete with CRRC, but Michael Sabia considers that this option is too difficult.
According to the latest financial year, CRRC’s international revenues from rail activities amounted to EUR 30.5 billion, followed by Siemens with EUR 8 billion and Alstom, with 7.3 billion. Bombardier ranks fourth with EUR 6.8 billion. After the completion of Siemens-Alstom transaction, Bombardier will have the third position.
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