Alstom has completed its acquisition of Bombardier Transportation that was first announced on 17 February 2020 when the French train and signalling manufacturer revealed that it had signed a Memorandum of Understanding with Bombardier Inc. and its shareholder Caisse de dépôt et placement du Québec (CDPQ).
The move followed an attempt in 2018 to combine Alstom with Siemens Mobility. This proposal was stymied by the European Commission due to competition concerns and the possibility that the merger would have resulted “in higher prices for the signalling systems that keep passengers safe and for the next generations of very high speed trains”.
Although the Bombardier takeover was also referred to the European Commission, approval was granted on the condition that Alstom
- Transferred Bombardier Transportation’s contribution to the V300 Zefiro very high-speed train and an offer of IP licence to Hitachi for the train co-developed by Hitachi and Bombardier Transportation for use in future very high-speed tenders in the UK;
- Divested itself of the Alstom Coradia Polyvalent and the Reichshoffen production site in France;
- Also disposed of the Bombardier Talent 3 platform and dedicated production facilities located within the Hennigsdorf site in Germany;
- Provided access to certain interfaces and products for some of Bombardier Transportation’s Signalling on-board units and train control management systems (TCMS).
The enlarged Alstom group has a combined proforma revenue of around €15.7 billion (£13.7 billion) and a €71.1 billion (£62.4 billion) combined orderbook. It employs 75,000 people worldwide in 70 countries, has extensive R&D capabilities and a large portfolio of products and solutions.
Henri Poupart-Lafarge, chairman and CEO of Alstom, said: “Today is a unique moment for Alstom and the mobility sector worldwide, with the creation of a new global leader centred on smart and sustainable mobility.
“More than ever, the world has to engage in a deep environmental and social transition to be able to address the great challenges of urbanization, equal opportunity to economic development and climate change.
“Transportation, essential to the working and social life but with great environmental impact is at the heart of this transition. Our responsibility, together with the 75,000 people of Alstom today, is to transform our unique set of assets created by this transaction into the enabler of this necessary transformation.
“Our responsibility is to bring the innovation required for such extreme challenges and that all communities throughout the world, as they are traveling to meet loved ones or to work, can have access to the same quality of service and efficiency, while caring for our planet.”
The Alstom Group already had a well-established customer base in France, Italy, Spain, India, South East Asia, Northern Africa and Brazil, whereas Bombardier Transportation’s strongest markets in the United-Kingdom, Germany, the Nordics, China, and North America.
Bombardier Transportation employees will join the Alstom Group as from 29 January 2021. These new talents will enrich Alstom’s operational profile at all levels and build, with Alstom’s employees, one agile, inclusive and responsible Alstom team.
CDPQ becomes Alstom’s main shareholder, with 17.5% of Alstom’s share capital. Bouygues now holds approximately 6% of Alstom’s share capital.
The reference price was established at €5.5 billion (£4.8 billion), at the bottom of the range of €5.5 billion to €5.9 billion announced on 16 September 2020. The actual payment was €4.4 billion, following adjustments for Bombardier Transportation’ negative net cash position as of 31 December 2020 and other contractual obligations totalling €1.1 billion.
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