Alstom Closes EUR 5.5bn Acquisition of Bombardier Rail Division.
MANews-(C)2009-2021
France-based rolling stock manufacturer Alstom (OTC: AOMFF) has closed the acquisition of Canada-based business jet, public transport vehicle and rail transportation group Bombardier's (OTC: BDRBF) Bombardier Transportation rail division, the group said.
The deal came in at the low range of the estimated EUR 5.5bn (USD 6.64bn) -- EUR 5.9bn price originally announced last September.
Alstom, integrating Bombardier Transportation, said it will strengthen its leadership in the growing sustainable mobility market by reaching a critical size in all geographies and integrating further solutions and assets to better serve its customers worldwide.
The enlarged group has a combined proforma revenue of around EUR 15.7bn and a EUR 71.1bn combined backlog.
It employs 75,000 people worldwide in 70 countries, has unparalleled R and D capabilities and a complete portfolio of products and solutions.
The rail market is supported by fundamental growth drivers, such as accelerated urbanisation, public investment strategies, and the worldwide push for green and digital transformation of transport systems.
Despite the pandemic, recent stimulus announcements clearly confirm the development of sustainable mobility and more specifically of rail as a long-term priority.
The rail manufacturing market is expected to grow at a 2.3% CAGR by 20253.
An increased worldwide reach, building on complementarities of the two groups
The Group will have an unparalleled commercial reach in all geographies thanks to the complementarities of the two companies.
While the Alstom Group already had a well-established customer base in France, Italy, Spain, India, South East Asia, Northern Africa and Brazil, Bombardier Transportation will bring strong customer proximity in strategic markets such as the United-Kingdom, Germany, the Nordics, China, and North America.
The group will have now in particular very strong capabilities in Europe and North America, which represent approximately 75% of the OEM accessible market.
As previously reported, the headquarters of Alstom of the Americas will be based in MontrA(c)al, QuA(c)bec leading all operations in the region as well as establishing a centre of excellence for design and engineering that will build on QuA(c)bec's well-established strengths in innovation and sustainable mobility.
Integrating Bombardier Transportation, Alstom will have the more complete rail portfolio. In Rolling Stock, its portfolio will range from...
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