You have permission to edit this article.
Edit
EU clears Alstom's acquisition of Bombardier rail unit
AP

EU clears Alstom's acquisition of Bombardier rail unit

  • Updated
  • 0
{{featured_button_text}}

BRUSSELS (AP) — The European Commission has given its go-ahead to the acquisition of the rail business of Canadian engineering firm Bombardier by French train maker Alstom.

Alstom, which makes the French TGV high-speed trains, said this year it had signed an agreement with a view to buy full control of Bombardier Transportation, for a price 5.8-6.2 billion euros ($6.3-6.7 billion) paid via a mix of cash and new Alstom shares.

The Commission launched an investigation and initially found that the transaction raised serious competition issues. The bloc’s competition authorities cleared the acquisition on Friday after Asltom offered “significantly improved" commitments.

“Alstom and Bombardier are leading providers of state-of-the-art trains used every day by millions of passengers across the European Union,” said Margrethe Vestager, the EU commission vice-president in charge of competition. “Thanks to the comprehensive remedies offered to solve the competition concerns in the areas of very high-speed, mainline trains and mainline signalling, the Commission has been able to speedily review and approve this transaction.”

Buying Bombardier Transportation will help Alstom compete with China’s CRRC, which has been growing its business outside of its home country.

The move will also give more heft to Alstom after its bid to merge with Germany’s Siemens was blocked by European Union regulators worried that it would make it a dominant presence in the region.

The decision to nix that deal was criticized by some European governments who want to create large European companies in various sectors that are capable of competing with state-backed companies in China and as well as U.S. multinationals.

Bombardier Transportation is focused on commuter trains and last year made almost $8.5 billion in sales.

Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

Locations

Be the first to know

* I understand and agree that registration on or use of this site constitutes agreement to its user agreement and privacy policy.

Related to this story

Most Popular

On the same day that three former US presidents joined in a moving tribute to civil rights hero John Lewis and just after the release of government data showing the worst quarterly plunge in economic activity ever recorded, President Donald Trump tried to seize control of the news agenda with a jaw-dropping suggestion: Consider delaying the November election.

  • Updated

COPENHAGEN, Denmark (AP) — A Norwegian cruise ship line halted all trips and apologized Monday for procedural errors after a coronavirus outbreak on one ship infected at least 5 passengers and 36 crew. Health authorities fear the ship also could have spread the virus to dozens of towns and villages along Norway's western coast.

  • Updated

ROME (AP) — Italian tenor Andrea Bocelli, who recovered from COVID and whose moving Easter performance sought to raise hopes during the pandemic, is striking a different public note, saying Italy’s lockdown made him feel “humiliated and offended” by depriving him of his freedom.

  • Updated

BEIJING — Numbers of new COVID-19 cases in China’s far northwestern region of Xinjiang are continuing to fall, with 28 reported on Monday. China reported 43 new cases nationwide, seven of the imported and eight in the northeastern province of Liaoning. No new deaths were reported, leaving China’s total at 4,634 among 84,428 cases. All the new cases in Xinjiang were in the regional capital and largest city of Urumqi, which has been at the center of China’s latest major outbreak since cases were first detected there in mid-July. The region has reported a total of 590 cases, all but four of them in Urumqi, where authorities have conducted mass testing, cut down on public transport, isolated some communities and restricted travel outside the city. Yet, while mainland China’s latest outbreak appears to have peaked, authorities in the semi-autonomous Chinese city of Hong Kong are struggling to contain a new wave of infections, with more than 200 new cases added over the weekend.

  • Updated

REIMS, France (AP) — Champagne is losing its fizz. For months, lockdown put the cork on weddings, dining out, parties and international travel — all key sales components for the French luxury wine marketed for decades as a sparkling must at any celebration.

Get up-to-the-minute news sent straight to your device.

Topics

News Alerts

Breaking News