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Trainmaker Alstom in talks for US$7 billion buyout of Bombardier unit

FRENCH train maker Alstom confirmed it's in talks to acquire the rail business of embattled Canadian train and plane maker Bombardier, the state-inflated giant that has driven itself to near bankruptcy

Trainmaker Alstom in talks for US$7 billion buyout of Bombardier unit

FRENCH train maker Alstom confirmed it's in talks to acquire the rail business of embattled Canadian train and plane maker Bombardier, the state-inflated giant that has driven itself to near bankruptcy

19 February 2020 - 19:00

FRENCH train maker Alstom confirmed it's in talks to acquire the rail business of embattled Canadian train and plane maker Bombardier, the state-inflated giant that has driven itself to near bankruptcy.

No final decision has been made, but Alstom and Bombardier said talks were continuing. The business could fetch about US$7 billion, a person familiar with the matter told Bloomberg.



A purchase would make Alstom the clear No 2 in rail equipment and help it counter the industry leader, China's CRRC Corp, which is increasingly targeting global sales. The Franco-Canadian deal would come after a merger between Alstom and Germany's Siemens was blocked last year by the European Union on antitrust considerations.



Bombardier has been offloading assets to pay down debt following a costly expansion of its commercial aviation business. The embattled Canadian transportation firm shocked the market last month by warning of disappointing fourth-quarter sales.



Bombardier has announced it will exit a venture with Airbus that builds the A220 jetliner to preserve cash.


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