‘Key milestone’ reached in Alstom’s acquisition project of Bombardier Transportation

Alstom has announced that it signed the sale and purchase agreement with Bombardier Inc and Caisse de dépôt et placement du Québec (CDPQ) for the acquisition of Bombardier Transportation.

It said: “The acquisition of Bombardier Transportation represents a transformational change for Alstom. It will enable the Group to accelerate on its strategic roadmap and strengthen its leadership in the context of a dynamic market, at a time where sustainable transportation is at the heart of the global agenda.”

Henri Poupart-Lafarge Chairman and CEO of Alstom, said: “Bombardier Transportation will bring to Alstom complementary geographical presence to broaden Alstom’s commercial reach in key growing markets, strong product complementarities in rolling stock, strategic scale in services and signalling, industrial capacity in key countries, a leading portfolio offering and additional R&D capabilities to invest in green and smart innovation. Alstom will also welcome new talent and expertise, with the arrival of Bombardier Transportation employees.”

Terms of the agreement have been adapted to the current situation. A €300m reduction in the price range has been agreed with Bombardier Inc and CDPQ. Excluding any further downward adjustments linked to the net cash protection mechanism, the price range for the acquisition of 100% of Bombardier Transportation shares will be therefore moved from €5.5bn to €5.9bn.

Alstom considers that the proceeds are likely to amount up to €5.3bn, based on estimated potential post-closing adjustment and obligations linked to the net cash protection mechanism, compared to the €5.8bn – €6.2bn range communicated on February 17, 2020.

The financing structure remains the same as communicated previously, in particular the size and terms of the rights issue and the reserved capital increases of CDPQ and Bombardier Inc. As announced last February, pursuant to the new terms of the acquisition, CDPQ will become the largest shareholder of Alstom with approximately 18% of the share capital and voting rights.

For more information visit www.alstom.com

21st September 2020