Alstom buys Bombardier for £.6.23bn to become second world largest in rail equipment

Alstom, French high-speed rail supplier Alstom has agreed to buy Canadian  Bombardier’s train unit in a €7.5bn deal, in the face of Chinese competition and growing demand in Europe, a year after their attempt to build a European rail champion with  Germany’s Siemens division was blocked by regulators.

Henri Poupart-Lafarge, born in Nancy, France,  Alstom’s CEO said, “This is just a transaction to make Alstom stronger and it’s not the nationalities of the companies that explain the deal”. The deal will create a group with revenue in excess of €15.5bn and becomes the second largest in the world in rail equipment.

The deal will continue to cut Bombardier’s debt pile of close to $9bn  and see it focusing exclusively on business aviation.