Announcement on HS2 bids expected soon after Alstom‘s takeover of Bombardier Transportation is finalised.
ALSTOM’S 5.5 billion euros (£4.8bn) acquisition of Bombardier Transportation was finalised on January 29, creating a global business of 75,000 staff employed across 70 countries, including 4,000 in the UK.
An announcement is now expected in the coming weeks regarding the ongoing tender for HS2 trains. Alstom has its own bid, while Bombardier is involved in a Joint Venture deal with Hitachi. One company cannot have two live bids for the £2.75bn deal. No party would comment.
Certain assets from the combined businesses must be sold as part of the commitments agreed with the European Commission last July. These include the transfer of Bombardier’s contribution to the V300 ZEFIRO very high speed train (VHST), and an offer of IP licence to Hitachi for the train co-developed by Hitachi and Bombardier for future UK tenders.
Speaking on January 29, Alstom Chairman and CEO Henri PoupartLafarge said: “Today is a unique moment for Alstom and the mobility sector worldwide, with the creation of a new global leader centred on smart and sustainable mobility.
“More than ever, the world has to engage in a deep environmental and social transition to be able to address the great challenges of urbanisation, equal opportunity to economic development, and climate change.”
Bombardier Transportation spokesman Will Tanner said a full review of both brand’s products would take place regarding what would be offered to the market. He added that its products and employees “have a bright future” and that integration planning had already started.
Tanner explained that following the sale, Bombardier will focus on aviation while sites and products acquired by Alstom will be rebranded in due course.
Although not specifically mentioning Derby Litchurch
Lane, Tanner said that the acquisition creates an “unparalleled commercial reach in all geographies”, and that the company would look to integrate its assets to better serve its customers. Prior to January
29’s announcement, Bombardier Transportation had won an order to supply monorail vehicles to Egypt from Derby (see separate story).
With 150,000 vehicles in traffic, Alstom will now have the largest installed vehicle base in the world. It also becomes the world’s second largest company for signalling products, in terms of revenue.
Following the deal, CDPQ
(Caisse de Dépôt et Placement du Québec) becomes Alstom’s main shareholder with 17.5% of its share capital (CDPQ is also a major shareholder in Eurostar). Bouygues (which includes Colas Rail in its portfolio) now holds around 6% of Alstom’s share capital.
In the UK, Bombardier had sites at Derby Litchurch Lane, Crewe Works (not rail-connected) and Ilford, while Alstom has 36 sites of various sizes across the country.