Alstomtakeoverof Bombardierapproved
THEplanned€6.2billiontakeover of Berlin-basedBombardier Transportationby the French Alstomgroup receivedthe necessarycompetition law approvalsfrom the European Commissionon July 31. gain agreementAlstom has hadto offerto sellsomeparts of the combinedbusinessw, ith part of this impactingthe UK market.
Intellectualproperty
Alstomhasagreedto transfer the intellectualpropertyfor the 'V300Zefiro/ETR1000'highspeedtrain to Hitachi.Thistrain is built in Italy by Hitachiand usedbyTrenitalia(asETR1000). Bombardier'sother'Zefiro'brandedtrainswill remainwith the new Alstomgroup.
In the UK,Alstom hasagreed all the jointly developed designwork for the proposed Bombardier/HitachHi S2train canbesoldto Hitachi.
Alstomhasalsohadto offer accessto other manufacturersto Bombardier'slegacysignalling systemsacrossEuropebecause in somecountries,especially the NetherlandsA, lstomwould otherwisebe in a monopoly position.
Alstomwill sellits'Coradia Polyvalent'EMUmodel (used by SNCFin Franceb, randed 'Regiolis')and the Reichshoffen (ex-DeDietrich)factory in France.
It will alsosellthe Bombardier 'Talent3' EMUmodel and part of the Hennigsdorfsite,nearBerlin.
The mergeris plannedfor completionby mid-2021, although Alstom hasalready suggestedit mayreduce the amount it is payingafter Bombardierreleasedworsethan expectedfinancialresultsfor the first sixmonthsof 2020.
Majorproblemswith contracts in the UK(the'Aventras' oftware, in particular),Germany('Talent3' EMUand DB'IC2'trainsoftware, plus manufacturingdefectsin new light railvehicles)were blamedby Bombardierfor the $319millionlossrecordedin just three monthsfrom April to June. Canadianstate-owned investorCaissede depot et placementdu Quebec,which owned 32.5%of Bombardier Transportationw, ill become Alstom'sbiggestshareholder, with around 18%of the company.
Aerospace
Canadian-basedBombardier Incwill remainin business, solelyfocusedon the aerospace industry.
The mergeris unlikelyto changethe workloadof Alstom's UKsitesin the short-term,with the BombardierDerbysite building'AventraE' MUsand monorailtrainsfor Cairoand the AlstomWidnessitefocusingon refurbishmentwork. Longer-termrationalisationof the enlargedcompany'smultiple Frenchand Germanfactory sites seemslikely.