Alstom Gives Bombardier Acquisition Update

Alstom first announced on 17 February 2020 that it intended to acquire Bombardier Transportation and had signed a Memorandum of Understanding with Bombardier Inc. and Caisse de dépôt du Québec to that effect.

Alstom’s unions have suggested that they will give their opinion on the move in summer 2020. For this they will use the ‘method agreement’ reached with management. An Extraordinary General Meeting vote on the reserved capital increases to CDPQ and Bombardier Inc. and the rights issue will take place no later than 31 October 2020.

Subject to EGM approval and market conditions, rights issue will take place between the second half of 2020 and the first half of 2021. The reserved capital increases will take place at closing.

Alstom says the syndication of 2.4 billion euros of Bridge Facilities and a new 1.5 billion Revolving Credit Facility related to the proposed acquisition of Bombardier Transportation was conducted in April 2020 on schedule.

However, the acquisition must be cleared by the relevant regulatory authorities and anti-trust authorities. If this is successful, Alstom estimates the transaction will close in the first half of 2021.

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