French heavy engineering group Alstom has inked a deal with Russia’s largest railway equipment manufacturer TransmashHolding (TMH).
Under the agreement, Alstom will take 25% plus one share in TMH’s parent company, Breakers Investment BV, to expand in Europe’s largest rail market.
The French company could also cooperate with TMH to supply locomotives for the Russian railways as part of the partnership.
Alstom will make an initial payment of $75m for the stake once certain conditions are met within a maximum of six months.
Alstom is expected to make the balance payment in 2012, depending on TMH’s results from 2008 to 2011.