Alstom set for green light for €6bn Bombardier rail deal
French giant Alstom is set to get approval from the EU’s competition watchdog to buy Bombadier’s rail business, paving the way for the creation of the world’s second largest rail firm.
Reuters reported that regulators were set to give the deal the go-ahead after Alstom made a number of concessions due to antitrust fears.
In order to win the EU’s backing, the firm said it would sell a rail factory in France and regional trains unit Coradia Polyvalent.
It threw in one of Bombardier’s commuter train divisions and attached production facilities at Hennigsdorf in Brandenburg as well.
Finally, Alstom also offered to provide access to some products within Bombardier’s train control systems and signaling units to rivals.
Sources told Reuters that it did not have to sell any more units after feedback from the European Commission.
The EU is expected to decide on the deal by 31 July. If, as expected, it is approved, Alstom will be behind only China’s CRRC Corporation in terms of size.
The deal could be worth up to €6.2bn.
Berlin-based Bombardier Transportation employs around 36,000 people and operates in 60 countries, building trains and providing services like signaling and maintenance to clients.
In 2019, Alstom proposed a merger with German industrial conglomerate Siemens in order to increase its scale.
However, this was blocked by the European Commission over concerns competition could be adversely affected.
City PM has contacted Alstom for comment.