Alstom to divest rail factories ahead of Bombardier acquisition

10 July 2020 (Last Updated July 10th, 2020 11:39)

Alstom has announced plans to carry out divestments of products and factories ahead of its acquisition of Bombardier Transportation.

Alstom to divest rail factories ahead of Bombardier acquisition
The acquisition will give Alstom access to the largest installed train fleet worldwide. Credit: Bombardier.

Alstom has announced plans to carry out divestments of products and factories ahead of its acquisition of Bombardier Transportation.

This move is expected to aid in obtaining regulatory approval from the European Union for the planned acquisition.

In February, Bombardier and Caisse de dépôt et placement du Québec (CDPQ) signed a memorandum of understanding (MoU) to sell the former’s rail business to Alstom.

Alstom formally notified the European Commission (EC) regarding the transaction on 11 June.

The commitments that Alstom has planned are expected to respond to the potential concerns of the EC.

Alstom has planned to transfer the contribution of Bombardier Transportation to the V300 ZEFIRO very high-speed train.

The company will also divest Alstom Coradia Polyvalent, the Reichshoffen production site in France, the Bombardier TALENT 3 platform and production facilities within the site in Hennigsdorf, Germany.

It also plans to provide access to some interfaces and products for several signalling on-board units and train control management systems (TCMS) of Bombardier Transportation.

Alstom announced its intent to submit the proposals after conducting initial discussions with the EC, in coordination with Bombardier Transportation and CDPQ.

The commitments are subject to approval from the EC.

These asset divestments will comply with the social processes and consultations with employee representatives’ bodies.

The completion of the purchase of Bombardier Transportation is said to be on track for the first half of next year.

In May, Bombardier stated that the Covid-19 pandemic may not affect the divestment of its rail business to Alstom.

Earlier this month, Alstom acquired Ibre, a specialist in the development, manufacture and supply of cast iron or steel brake discs.