by Josephine Cordero Sapién
17 Feb 2020
Alstom Bombardier acquisition
Alstom has released a statement responding to rumours that it was in acquisition talks with Bombardier.
It confirmed it was exploring this option but did not give anything further away at this time. This is the latest attempt by European rail companies to combine forces in the face of growing Chinese competition.
“Alstom confirms being in discussions with Bombardier regarding a possible acquisition of Bombardier Transportation by Alstom.
“Discussions are on-going. No final decision has been made.
“Alstom will inform the public of any material developments in this respect.”
Given that the attempted merger between Alstom and Siemens Mobility was rejected by the European Commission in February last year, saying that it would harm competition in markets for railway signalling systems and very-high-speed trains, it seems unlikely that this exploration would be successful. Bombardier itself expressed its opposition to the merger at the time:
“We are pleased that the European Commission, backed by the national competition authorities, has prohibited the proposed merger of Siemens and Alstom. This decision is based on the law and facts at hand after a very thorough 16-month investigation by the Commission.”
According to Reuters the Alstom-Bombardier deal would lie in the region of $7 billion. In 2017, prior to the attempted merger between Alstom and Siemens, there was also an attempt between Bombardier and Siemens to join forces.
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