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September 17, 2020

Alstom signs deal to acquire Bombardier rail unit with revised terms

Alstom has signed the sale and purchase agreement to acquire Bombardier's rail division Bombardier Transportation with revised price terms.

Alstom has signed the sale and purchase agreement to acquire Bombardier’s rail division Bombardier Transportation with revised price terms.

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The company signed the deal with Bombardier and Caisse de dépôt et placement du Québec (CDPQ), a key stakeholder in Bombardier Transportation.

The revised terms reduce the price range by €300m.

Alstom will also pay between €5.5bn and €5.9bn to purchase 100% of Bombardier Transportation shares, excluding any additional downward adjustments linked to the net cash protection mechanism.

In a statement, Alstom said that the revision reflects the current situation.

According to a Reuters report, Bombardier’s poor quarterly performance prompted Alstom to revise the acquisition offer. The current Covid-19 pandemic may also have contributed to the move.

Now, Alstom estimates that the proceeds will amount up to €5.3bn, compared with the €5.8bn-€6.2bn range communicated in February.

However, the financial structure will remain the same where CDPQ become the largest shareholder of Alstom with around 18% of the share capital and voting rights.

Alstom chairman and CEO Henri Poupart-Lafarge said: “The acquisition of Bombardier Transportation represents a transformational change for Alstom.

“It will enable the group to accelerate on its strategic roadmap and strengthen its leadership in the context of a dynamic market, at a time where sustainable transportation is at the heart of the global agenda.”

Alstom expects to close the acquisition in the first quarter of next year, subject to regulatory approvals and customary closing conditions.

Last month, the European Commission (EC) gave conditional clearance to the deal. The deal has also received approval from Singapore’s competition watchdog.

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Free Report
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2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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