Canadian company Bombardier has stated that the Covid-19 pandemic may not affect the divestment of its rail business to Alstom in France.
In February 2020, 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.
The move comes as Bombardier plans to focus exclusively on business aviation and deleverage via the sale of its business Bombardier Transportation.
Earlier, Alstom stated that it will adhere to the previously agreed terms of the deal to acquire the business for €6.2bn ($6.7bn) even though it suffered a decline in its earnings due to the Covid-19 pandemic.
Reuters quoted a Bombardier spokeswoman as saying in a statement: “We continue to make progress working with Alstom to complete the sale of our transportation business.
“We currently do not expect any delays to the original timeline as a result of the Covid-19 pandemic.”
The deal is expected to close in the first half of next year, after receiving clearance from regulatory authorities and anti-trust authorities.
The acquisition will allow Alstom to establish a comprehensive product offering across all rail sectors and provide new rolling stock for the company’s portfolio.
It will also give Alstom access to the largest installed train fleet around the world, as well as a maintenance facilities network.
Earlier this month, India’s National Capital Region Transport Corporation (NCRTC) gave a Letter of Award to Bombardier Transportation to build and supply regional commuter and intracity transit trains.