Alstom acquired Bombardier's transportation division, Bombardier Transportation.
On February 13, 2020, the French multinational rolling stock manufacturer, Alstom, agreed to purchase the entirety of Bombardier's rail business, known as Bombardier Transportation. This significant acquisition reshaped the global rail industry landscape.
The Acquisition of Bombardier Transportation
The deal, valued at €7 billion, saw Alstom take over all of Bombardier Transportation's operations, including its trains, signalling, and services businesses. This strategic move aimed to create a stronger, more competitive global leader in sustainable mobility solutions.
Key Details of the Acquisition
The transaction involved specific dates and financial figures that highlight the magnitude of the deal:
| Aspect | Detail |
|---|---|
| Buyer | Alstom |
| Acquired Division | Bombardier Transportation |
| Agreement Date | February 13, 2020 |
| Completion Date | January 29, 2021 |
| Acquisition Price | €7 billion |
| Primary Industry | Rail and Sustainable Mobility |
This acquisition significantly expanded Alstom's global footprint and product portfolio, integrating Bombardier Transportation's extensive expertise and market presence.
What Happened to Bombardier Inc.?
It is important to note that while its transportation division was sold, Bombardier Inc. itself was not entirely bought out. Following the sale of Bombardier Transportation to Alstom, Bombardier Inc. refocused its operations primarily on its aerospace business, specifically the manufacturing of business jets. The company continues to design, manufacture, and service its renowned Global, Challenger, and Learjet aircraft families. This strategic divestiture allowed Bombardier Inc. to reduce its debt and streamline its operations around its core aviation strengths.
Strategic Implications for the Rail Industry
The acquisition had profound implications for the global rail industry:
- Market Consolidation: It further consolidated the market, creating a dominant player alongside other giants.
- Enhanced R&D: The combined entity gained greater resources for research and development, potentially leading to more innovative rail technologies.
- Increased Competition: Despite consolidation, the larger scale allows for more robust competition against other global players.
- Sustainability Focus: Both companies had a strong emphasis on sustainable transport, and the merger reinforced efforts towards greener rail solutions.
This move by Alstom was a pivotal event, strengthening its position as a global leader in the mobility sector.
