Bombardier Inc. T.BBD.A

Analysts are on the Bombardier back rail division today:

[Zimmee1]

Globe says Alstom gets nod to take Bombardier rail unit
 

2020-08-04 07:35 ET - In the News

 

The Globe and Mail reports in its Saturday edition that Alstom SA won the nod of European regulators to take over Bombardier's rail business. The Globe's Nicolas Van Praet writes that the European Commission initially voiced concerns about Alstom's expanded market clout with the deal, but gave its blessing to the $11.8-billion transaction Friday after concessions proposed by the company. Alstom is now pledging to sell assets attached to Bombardier's Zefiro high-speed train venture with Japan's Hitachi and sell its own Reichshoffen factory in France. Commission executive vice-president Margrethe Vestager said: "Going forward, a stronger combined Alstom and Bombardier entity will emerge. At the same time, thanks to these remedies, the new company will also continue to be challenged in its core markets to the benefit of European customers and consumers." The decision means the companies can push ahead toward closing the takeover as expected in the first half of 2021 without a more in-depth antitrust review. That speedier timeline is crucial for Bombardier in particular, which needs proceeds from the sale to fix its capital structure and stave off another cash crunch that would threaten its future.

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