Alstom-Bombardier: Rail Sector Acquisition & Future Outlook

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Introduction

In December 2020, Alstom completed the acquisition of Bombardier Transportation. This followed the European Commission’s approval of the acquisition on July 31, 2020. The transaction, valued at €5.5 billion, closed after obtaining all necessary regulatory approvals.

Acquisition Details

The acquisition of Bombardier Transportation by Alstom was finalized in December 2020. The deal, initially announced in February 2020, was approved by the European Commission on July 31, 2020. The purchase price was €5.5 billion. The completion of the acquisition was contingent upon securing all required regulatory clearances.

Regulatory Approvals

The European Commission’s approval on July 31, 2020, was a key step in the acquisition. This approval was granted under the condition that Alstom would sell certain assets. These included the Coradia Polyvalent platform and the Reichshoffen plant in France, as well as the Talent 3 platform and the Bombardier Transportation activities in Hennigsdorf, Germany.

Post-Acquisition Developments

Following the acquisition, Alstom has focused on integrating Bombardier Transportation’s operations. This integration is designed to enhance Alstom’s global presence and product offerings, particularly in the rolling stock and signalling markets. The combined entity aims to strengthen its position in the rail transport sector.

Future Outlook

The acquisition has positioned Alstom to capitalize on growth opportunities in the rail industry. The integration of Bombardier Transportation is expected to improve Alstom’s capabilities in areas such as regional trains and urban transit systems. The company plans to leverage its expanded portfolio and global footprint to meet the increasing demand for sustainable mobility solutions worldwide.

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Company Summary

Alstom: Alstom acquired Bombardier Transportation in December 2020. The company is a global leader in the rail transport sector, providing rolling stock, signalling, and services.

Bombardier Transportation: Formerly a division of Bombardier Inc., Bombardier Transportation was acquired by Alstom in December 2020. It was a global manufacturer of rail equipment and systems.

Technology

Coradia Polyvalent: This platform was part of the assets Alstom had to sell as a condition of the European Commission’s approval. It is a regional train platform.

Talent 3: This platform was also included in the assets Alstom was required to divest.

Conclusion

Alstom completed the acquisition of Bombardier Transportation in December 2020 for €5.5 billion. The European Commission approved the acquisition in July 2020, subject to the sale of certain assets. The integration aims to strengthen Alstom’s market position.

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