|Alstom acquires Bombardiier (1558021)|
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Alstom acquires Bombardiier
Posted by TransitChuckG on Fri Sep 18 14:20:11 2020
INDUSTRY: Formal signing of the sale and purchase agreement for the
acquisition of Bombardier Transportation from Bombardier Inc and Caisse
de dépot et placement du Québec was announced by Alstom on September
Closing of the transaction is now expected in Q1 2021, subject to
regulatory approvals and customary conditions.
Bombardier Transportation Bautzen test centre (3)
The terms have been ‘adapted to the current situation’, Alstom said.
This includes a €300m reduction in the price range to €5·5bn to
€5·9bn, excluding any further downward adjustments linked to the net
cash protection mechanism.
Alstom said it considered that the proceeds are likely to amount up to
€5·3bn, compared to the €5·8bn to €6·2bn range announced on
February 17 2020.
The financing structure remains the same, and CDPQ would become the
largest shareholder of Alstom with approximately 18% of the share
capital and voting rights.
Strong strategic rationale
Alstom said it was ‘convinced of the strong strategic rationale for
the acquisition’, adding that it has an objective to deliver €400m
run rate cost synergies in year four to five and to restore Bombardier
Transportation margin towards standard level in the medium term.
The transaction is expected to be double-digit EPS accretive in year two
post closing, and would preserve Alstom’s credit profile with a Baa2
‘The acquisition of Bombardier Transportation represents a
transformational change for Alstom’, said Chairman & CEO Henri
Poupart-Lafarge. ‘It will enable the group to accelerate on its
strategic roadmap and strengthen its leadership in the context of a
dynamic market, at a time where sustainable transportation is at the
heart of the global agenda.
‘Bombardier Transportation will bring to Alstom complementary
geographical presence to broaden Alstom’s commercial reach in key
growing markets, strong product complementarities in rolling stock,
strategic scale in services and signalling, industrial capacity in key
countries, a leading portfolio offering and additional R&D capabilities
to invest in green and smart innovation. Alstom will also welcome new
talent and expertise with the arrival of Bombardier Transportation