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Alstom Completes €5.5B Bombardier Takeover

 |  January 31, 2021

French train maker Alstom announced on Friday, January 29, it had completed its previously announced purchase of Bombardier rail business, an acquisition that should make it the world’s No. 2 in its industry behind China’s CRRC, reported Reuters.

Alstom, which cut its offer for Bombardier rail in September 2020, stated the price for the deal was established at €5.5 billion (US$6.7 billion), at the bottom of a range of €5.5 billion to €5.9 billion (US$6.7 billion to US$7.1 million) indicated previously.

Alstom, owned 9.7% by French conglomerate Bouygues, launched a €2 billion capital increase to finance the Bombardier deal in December after it had secured European Union antitrust approval six months earlier.

The finalization of this Franco-Canadian deal comes on the heels of Canada’s Alimentation Couche-Tard dropping its approach to France’s Carrefour after the French government expressed its firm opposition to the deal.