PARIS (Reuters) - French train maker Alstom said on Friday it had completed its previously announced purchase of Bombardier rail business, an acquisition that should make it the world’s No. 2 in its industry behind China’s CRRC.
Alstom, which cut its offer for Bombardier rail in September 2020, said the price for the deal was established at 5.5 billion euros ($6.7 billion), at the bottom of a range of 5.5 billion to 5.9 billion euros indicated previously.
At around 1220 GMT, Alstom’s shares were down 0.5%, faring less worse than France’s CAC 40 (-0.89%).
The combined group will have 15.7 billion euros in revenues with an order book of 71.1 billion euros and 75,000 employees in 70 countries.
Alstom, owned 9.7% by French conglomerate Bouygues, launched a 2 billion-euro capital increase to finance the Bombardier deal in December after it had secured European Union antitrust approval six months earlier.
The finalization of this Franco-Canadian deal comes on the heels of Canada’s Alimentation Couche-Tard dropping its approach to France’s Carrefour after the French government expressed its firm opposition to the deal.
($1 = 0.8241 euros)
Reporting by Sudip Kar-Gupta and Benoit Van Overstraeten; editing by Jason Neely and Steve Orlofsky
Our Standards: The Thomson Reuters Trust Principles.