On September 2020:Final turnover of the rail business Bombardier sold to  Alstom SA is below expectation 

  Famous Canadian enterprises .transportation manufacturing giant Bombardier announced on Sep 16,the final agreement of sell its rail business to France Alstom is finally reached.Bombardier and Quebec Savings and Investment Group will sell Bombardier’s rail transportation equipment subsidiary to Alstom SA at a turnover of＄8.4billion dollars.The Definitive Agreement for Sale and Purchase has been signed by the three parties.     

  This turnover is less than＄350 million dollars compare with the MOU(memorandum of understanding)published on this Feb.However Bombardier said,the favourable exchanging rate is now offsetting the drop in transaction prices.

After deducting the debt and＄2.2billion dollars Quebec Savings and Investment Group equity gain in this deal,Bombardier expects to actually receive＄4 billion dollars.

 Bombardier’s president and CEO Eric Martel said in a press release,this is an important milestone for Bombardier to realize the nearest-term priority items and repositioning Bombardier as a pure business jet manufacturing enterprise.

   This transaction also needs to go through the relevant regulatory review process ,and to be approved by Alstom SA’EGM(Extraordinary general meeting )

 Alstom SA will be the second biggiest rail transportation manufacturer in the world rank only second to CRRC .

Related:

News on Feb 2020:Bombardier agreed to sell its rail department to AlstomSA at＄8.2 billion.   

Canadian Bombardier said,it has agreed to sell its rail unit to France Alstom SA  for an enterprise value of  ＄8.2 billion,for it focuses  more on aviation business and pays down debts.The acquisition will be a mix of stock and debt.

   Bombardier and Alstom confirmed in a statement:this transaction will largely in cash,partly paid for in new Alstom shares.

 Bombardier said,this transaction is expected to be finished in the earlier of 2021. Boards of directors of both companies has approved the memorandum of understanding between Bombardier and Alstom.

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  Bombardier was founded in 1942 with its headquarters in Montreal, Canada .It is the only equipment manufacturer both in aviation and locomotive unit at the same time.Bombardier is the third largest civil aircraft manufacturer.It covers its business more than 60 countries,with its employees more than 70 thousand.It is a famous company and economic group with a lot of contacts with China.

 In recent years,Bombardierhas successively set up some subsidiaries or production plants in Qingdao,Changchun,Changzhou,Shanghai,Nanjing,Beijing,Suzhou,Guangzhou and Hongkong through joint venture and sole proprietorship.It covers various business scope ofAircraft assembly, aircraft parts production, subway bus design and production, urban rail transit bus designand production, passenger train compartment design and production, rail transit signal system, communication and integrated monitoring system and equipment design and production,it has more than 7,000 employees in China.

  In addition,Bombardier Aerospace group has signed several agreements with Chinese manufacturers to cooperate in aircraft manufacturing.