French rolling stock manufacturer Alstom has completed its previously announced acquisition of Bombardier’s rail business.

The deal concludes nearly a year after Bombardier and key shareholder Caisse de dépôt et placement du Québec (CDPQ) signed a memorandum of understanding (MoU) with Alstom for the divestiture of Bombardier Transportation.

A revised agreement, which reduced the price terms, was signed in September 2020.

At completion, the value of the deal was established at €5.5bn, at the bottom of the €5.5bn to €5.9bn range indicated earlier.

With the acquisition now complete, the combined firm now becomes one of the largest mobility companies in the world with an increased commercial reach and solution portfolio.

It is expected to have combined pro-forma revenue of around €15.7bn with €71.1bn in combined order backlog, and 75,000 employees across 70 countries.

Alstom chairman and CEO Henri Poupart-Lafarge said: “Today is a unique moment for Alstom and the mobility sector worldwide, with the creation of a new global leader centred on smart and sustainable mobility.

“More than ever, the world has to engage in a deep environmental and social transition to be able to address the great challenges of urbanisation, equal opportunity to economic development and climate change. Transportation, essential to the working and social life but with great environmental impact is at the heart of this transition.

“Our responsibility, together with the 75,000 people of Alstom today, is to transform our unique set of assets created by this transaction into the enabler of this necessary transformation.”

Alstom funded the acquisition through the rights issue of around €2bn completed last month.

The deal received conditional approval from the European Commission (EC) in August last year.

Now, Alstom will seek to finalise the sale of certain assets of the combined group as committed earlier.