Train builder Bombardier is soon to be taken over by French company Alstom.
Bombardier already employs around 2,000 people in the UK at its Derby factory while it also has several maintenance depots located around the country.
Following the release of its statement, Alstom has confirmed that it has signed a Memorandum of Understanding with Bombardier Inc. and Caisse de depot et placement du Quebec as they begin to acquire Bombardier Transportation. After the transaction has taken place, Alstom will have a backlog of around €75bn as well as revenues of approximately €15.5bn. The cost of acquiring all of Bombardier Transportation shares will range from €5.8bn to €6.2bn and this will be covered through cash and new Alstom shares.
The chairman and CEO of Alstom, Henri Poupart-Lafarge has said they the acquisition is a very proud moment and that it gives them a chance to enhance their position globally, at a time when the mobility market is growing. Therefore, the acquisition will improve their reach and their ability to respond to the demands for sustainable mobility.
What this will offer Alstrom is a presence globally as well as a foothold in many growing markets as well as technological platforms. As a result, they can work more innovatively, while also improving both smart and green innovations. Therefore, the company is looking forward to welcoming all of the Bombardier workforce while also looking to add value to stakeholders and customers in particular.
Danny Di Perna, the president of Bombardier Transportation has said that the announcement is welcomed and that they see the product and both the geographical abilities will complement each other. As a result, it will enable the company to meet the growing demand for rail on a global scale. As green and digital rail solutions form the next generation of the rail industry, they are committed to meeting these changes and so, through improved investment innovation capabilities, the company will have the chance to deliver on a new level.
The takeover will need to be approved at an Extraordinary General Meeting by the end of October 2020 but the indications are already there that the deal will be agreed. Regulators will also need to approve the transaction but the deal should be completed by the middle of 2021.