After weeks of rumors, the long-announced deal between Alstom and Bombardier is expected to be released soon. Monday, February 17, in a statement, the French company confirmed that "Discussions are underway regarding a potential acquisition of Bombardier Transportation", but that " no final decision has been made ". According to Wall street journal, a preliminary agreement was reached this weekend. The American daily reports a transaction of more than 7 billion US dollars (6.5 billion euros).
Several sources in France and Canada assure the World that an announcement is indeed expected very quickly. "This is good news for France and Canada, and Quebec in particular", commented a source close to the Quebec government. On the Alstom union side, the announcement is really no longer in doubt. "Compared to the merger project with Siemens, which failed last year, this project appears more equitable, especially in terms of governance", assures a French union source. In fact, the company headed by Henri Poupart-Lafarge should take over and directly control Bombardier Transportation, which has more than 40,000 employees, compared to 36,000 for the French group.
In detail, Alstom must buy the Canadian company – whose division headquarters is historically based in Berlin – for 70% in cash and 30% in shares. The Caisse de depot et placement du Quebec (CDPQ), which owns 32.5% of Bombardier Transportation, is set to become the largest shareholder in the French rail group in the medium term, with a 15% to 20% stake. Bouygues, Alstom’s current largest shareholder, could see its stake dilute to around 10%, compared to 15% currently.
indebtedness
In Canada, the sale of Bombardier's transportation sector to Alstom is another step in the dismantling of the company, which has become inevitable in view of its debt, US $ 9.3 billion in long-term debt. Its CEO Alain Bellemare had taken control of this ex-Canadian economic family group on February 13, 2015, and began to sell many assets: turboprop planes, Q400, CRJ regional jets and the former C-Series which became Airbus A220. But, who appeared as a savior just five years ago, Alain Bellemare failed to draw up a clear and lasting strategy to get the multinational out of its debt. Distrust of it has increased in recent months, Bombardier shares, which quoted $ 2.61 on arrival, were trading at $ 1.65 on February 14.
