Alstom completes acquisition of Bombardier Transportation
by CM Staff
EUR5.5 billion purchase creates strong commercial reach in all geographies.
Alstom acquires Bombardier for EUR5.5 billion
TORONTO — On Jan. 29, Alstom SA announced the acquisition of Bombardier Transportation, a global transportation company. The move signals Alstom’s diversification into sustainable mobility and having a more global presence.
The enlarged Group has a combined proforma revenue of around €15.7 billion and a €71.1 billion combined backlog. It employs 75,000 people worldwide in 70 countries, has strong R&D capabilities and a complete portfolio of products and solutions.
“Today is a unique moment for Alstom and the mobility sector worldwide, with the creation of a new global leader centered 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 urbanization, equal opportunity to economic development and climate change. Transportation, essential to the working and social life but with great environmental impact is at the heart of this transition.” said Henri Poupart-Lafarge, Chairman and CEO of Alstom.
The rail market is supported by fundamental growth drivers, such as accelerated urbanisation, public investment strategies, and the worldwide push for green and digital transformation of transport systems. Despite the pandemic, recent stimulus announcements clearly confirm the development of sustainable mobility and more specifically of rail as a long-term priority. The rail manufacturing market is expected to grow at a 2.3% CAGR by 2025.
The Group will have a strong commercial reach in all geographies thanks to the complementarities of the two companies. While the Alstom Group already had a well-established customer base in France, Italy, Spain, India, South East Asia, Northern Africa and Brazil, Bombardier Transportation will bring strong customer proximity in strategic markets such as the United-Kingdom, Germany, the Nordics, China, and North America. The Group will have now in particular very strong capabilities in Europe and North America, which represent approximately 75% of the OEM accessible market.
The headquarters of Alstom of the Americas will be based in Montréal, Québec – leading all operations in the region – as well as establishing a centre of excellence for design and engineering that will build on Québec’s well-established strengths in innovation and sustainable mobility.
