BREAKING: Alstom Completes Acquisition of Bombardier Transportation

29 January 2021: Alstom has completed its acquisition of Bombardier Transportation today, the French rolling stock manufacturer announced.

With the integration of Bombardier Transportation complete, the Group now has a combined proforma revenue of approximately 15.4 billion euros and a 71.1 billion euro combined backlog. It employs 75,000 globally in 70 different countries. Alstom says this move will “strengthen its leadership in the growing sustainable mobility market by reaching a critical size in all geographies and integrating further solutions and assets to better service its customers worldwide”.

Henri Poupart-Lafarge, Chair and CEO, 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.”

A Growing Market

Alstom estimates that the rail manufacturing market will grow at a 2.3 percent CARG by 2025, saying that the rail market was supported by fundamental growth drivers such as accelerated urbanisation and an international push towards making transport systems both greener and more digital.

An Increased Reach

By incorporating Bombardier Transportation, Alstom says it will now have an unparalleled commercial reach in all geographies, because the two companies had been complementary in this respect. Alstom’s established base was France, Italy, Spain, India, South East Asia, Northern Africa and Brazil, while Bombardier Transportation had a focus on the United Kingdom, Germany, the Nordics, China, and North America. The Group will have a very strong position in the European and North American markets, which it says make up around 75 percent of the OEM accessible market.

Alstom’s Americas headquarters will be located in Montréal, Quebec.


Alstom says it aims to generate 400 million euros in cost synergies an annual run rate basis by years 4–5 and to restore Bombardier Transportation’s margin to a standard level in the medium term.

CDPQ (Caisse de dépôt et placement du Québec) has become Alstom’s main shareholder (17.5 percent of Alstom’s share capital). Bouygues now holds approximately 6 percent of Alstom’s share capital.


The reference price was set at 5.5 billion euros at the bottom range of 5.5–5.9 billion euros, as announced on 16 September 2020. The proceeds for the acquisition were established at 4.4 billion euros. These include the impact of the minimum cash adjustment mechanism based on a negative net cash position of Bombardier Transportation as of 31 December 2020 and other further contractual adjustments for an amount of 1.1 billion euros.

Alstom will now pursue and finalise sales of a number of assets as set out by the European Commission.

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