Alstom announced that it has signed a Memorandum of Understanding with Bombardier Inc. and Caisse de dépôt et placement du Québec (CDPQ) in view of the acquisition of Bombardier Transportation. Post-transaction, Alstom will have a backlog of around EUR 75 billion (US$ 81.57 billion) and revenues around EUR 15.5 billion (US$ 16.85 billion).

The price for the acquisition of 100% of Bombardier Transportation shares will be EUR 5.8 billion (US$ 6.3 billion) to EUR 6.2 billion (US$ 6.74 billion) which will be paid via a mix of cash and new Alstom shares. CDPQ will reinvest c.EUR 2 billion (US$ 2.17 billion) corresponds to 100% of cash proceeds to be received from the sale of its stake in Bombardier Transportation and further invest EUR 0.7 billion (US$ 0.76 billion) in Alstom, outlining its strong belief in the strategic rationale and value creation potential of the combination.

The acquisition of Bombardier Transportation is a one-time opportunity coming at the right moment for Alstom, having significantly strengthened its operational and financial profile over the past 4 years to accelerate its strategic roadmap, and adding to Alstom complementary commercial and industrial platforms. Bombardier Transportation will notably bring to Alstom:

• complementary geographical presence to broaden Alstom’s commercial reach in key growing markets leveraging on Bombardier’s successful historical track record in Germany, UK, North America and its unique presence in China
• attractive rolling stock additions to Alstom’s portfolio establishing a comprehensive offering across all rail segments to better address customers’ needs for fit-for-purpose mobility solutions, notably with selective niches such as Monorail, People Mover and bringing strong expertise recognition through the development of local specific solutions to blue-chip clients
• significant assets for Alstom services business with access to the largest installed train fleet worldwide and a wide maintenance facilities network in a high-value segment and opening new opportunities with strengthened market coverage and service offering
• complementary and strategic new geographies in signaling enabling Alstom to accelerate the roll-out of its solutions leveraging on new market access and highly qualified employees consolidating Alstom capabilities in a strategic segment
• complete innovation portfolio and significant engineering and R&D resources to lead smart and green mobility innovations
• best cost industrial footprint including in Eastern Europe, Mexico and China and complementary footprint in mature markets e.g. Germany & UK