Bombardier sell to Alstom papers complete
December 1 marks the day Bombardier and Alstom have completed all the necessary administrative approvals to complete the sell of Bombardier Transports to Alstom. The talks to sell the Canadian company’s rail division to Alstom began in February this year. For the past few months, negotiations were made and the official transactions will close on January 29 next year.
Bombardier has made this decision as it wants to focus on its aviation business. “Going forward, we will focus all our capital, energy and resources on accelerating growth and driving margin expansion in our market-leading 7 billion Dollar business aircraft franchise,” says Alain Bellemare, Bombardier chief executive.
On 17 February 2020, both parties agreed for a selling price of 8.2 billion US dollars (around 7.45 billion euros). Further negotiations will be made with Works Councils of Alstom and Bombardier in the first half of 2021. The Canadian company will use the money to pay the outstanding debt of $9.3 billion dollars. “It really changes the game for us. It positions Bombardier to accelerate our deleveraging,” says the CEO of Bombardier.
“I’m very proud to announce the acquisition of Bombardier Transportation, which is a unique opportunity to strengthen our global position on the booming mobility market,” states Henri Poupart-Lafarge, chairman and CEO of Alstom. The French rolling stock manufacture will get new shareholders after the deal is finalized early next year. “Alstom will also welcome new talent and expertise, with the arrival of Bombardier Transportation employees,” adds CEO of Alstom.