Bombardier has approached France’s Alstom and Japan’s Hitachi to find a merger partner for its rail business as it struggles to contain costs that have eaten into margins, sources told Reuters.
The Canadian manufacturer of planes and trains is working with Citigroup and UBS to strike a deal that could help create a rail champion to better compete with China’s state-backed operator, CRRC.
Rail companies are eyeing consolidation to reduce costs through scale in a market dominated by CRRC, the world’s largest train maker.
Bombardier has been reviewing several rail merger scenarios in recent months which also involved a possible deal with Germany’s Siemens and a Chinese counterpart, but these options failed to gain traction, one of the sources said.
It remains in active talks with Alstom, one of its closest rivals in Europe, while also looking at Hitachi as another merger option, the sources said, requesting anonymity as the matter is confidential.
Full Content: Ottawa Citizen
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
UK Probes Lindab’s Acquisition of HAS-Vent Amid Fears of Market Monopoly
Apr 28, 2024 by
CPI
Shein Faces EU Regulations Over User Data
Apr 28, 2024 by
CPI
Google Fights Back Against US Antitrust Lawsuit
Apr 28, 2024 by
CPI
US Homeland Security Establishes Blue-Ribbon Board with Tech CEOs to Advise on AI
Apr 28, 2024 by
CPI
FTC Accuses Amazon Executives of Using Disappearing Messaging Apps to Conceal Evidence
Apr 28, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI