BRUSSELS: France's Alstom SA clinched EU antitrust approval on Friday to acquire Canadian rival Bombardier Inc's rail business in a deal that will elevate it to the world's second-largest rail maker after China's CRRC Corp .
Alstom's success in gaining EU clearance for the deal valued up to 6.2 billion euros contrasted with its failed attempt last year to combine its rail assets with Siemens AG , which was vetoed by regulators because the companies refused to offer more concessions.
The Commission said Alstom will sell a French rail factory in Reichshoffen, its regional train unit Coradia Polyvalent, and a Bombardier commuter trains division and related production facilities at its Hennigsdorf site in Germany. The company also agreed to sell Bombardier's stake in a consortium with Hitachi and provide access to some products within Bombardier's train control systems and signalling units to rivals.French Finance Minister Bruno Le Maire welcomed the EU green light.
Bombardier said:"Today's decision marks a positive step for the growth opportunities of the European rail sector, which is a world leader thanks to strong domestic competition and commitment to the next generation of green and digital mobility solutions."Alstom’s Force Ouvriere union said the operation was financially risky and aimed only at becoming bigger, even if it meant some parts of the company had to be cut off.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »