Alstom has today announced that it has signed a Memorandum of Understanding with Bombardier Inc. and Caisse de dépôt et placement du Québec (CDPQ) in view of the acquisition of Bombardier Transportation.
Post-transaction, Alstom will have a backlog of around £62.5bn and revenues around £12.9bn. The price for the acquisition of 100% of Bombardier Transportation shares will be between £4.8bn to £5.2bn which will be paid via a mix of cash and new Alstom shares.
CDPQ will reinvest c.£1.7bn corresponding to 100% of cash proceeds to be received from the sale of its stake in Bombardier Transportation and further invest £580m in Alstom, outlining its belief in the strategic rationale and value creation potential of the combination.
Henri Poupart-Lafarge, Chairman and CEO of Alstom said: “I’m very proud to announce the acquisition of Bombardier Transportation, which is a unique opportunity to strengthen our global position on the booming mobility market. This acquisition will improve our global reach and our ability to respond to the ever-increasing need for sustainable mobility.
“Bombardier Transportation will bring to Alstom complementary geographical presence and industrial footprint in growing markets, as well as additional technological platforms. It will significantly increase our innovation capabilities to lead smart and green innovation. We will be thrilled to welcome all the talent and energy of Bombardier Transportation employees. We are deeply committed to step up the turnaround of Bombardier Transportation activities and deliver significant value to all stakeholders, particularly our customers.
“We will also further develop Bombardier Transportation’s historical presence in Québec, drawing on Québec’s well-established strengths in innovation and sustainable mobility. We are pleased to welcome CDPQ as a new long-term shareholder. CDPQ is fully supportive of the transaction and Alstom’s strategy.”