Alstom: the French manufacturer acquires Bombardier Transport and becomes the world number 2 in the sector

A great acquisition. The French railway manufacturer Alstom became, on Friday January 29, the world number two in the sector by completing the takeover of its Canadian competitor Bombardier. In total, the group will spend 5.5 billion euros to buy 100% of Bombardier Transport.

In detail, this means that Alstom will pay 4.4 billion euros to the Canadian group to resume its rail activities, to which is added 1.1 billion to cover negative cash flow and “other contractual adjustments”. This is much less than the price of 5.8 to 6.2 billion euros put forward when the transaction was announced in February 2020.

Alstom becomes the world number two in the sector with a combined turnover of 15.7 billion euros and 75,000 employees in 70 countries, including 17,500 engineers. The leader of the sector, the Chinese manufacturer CRRC, however, remains far ahead with a turnover of nearly 29 billion euros in 2019.

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