Tuesday, November 29, 2016

CRRC in talks to acquire Škoda Transportation

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CRRC Corporation confirmed in a statement to the Hong Kong Stock Exchange on November 28 that its CRRC Zhuzhou Electric Locomotive subsidiary has entered negotiations regarding the potential acquisition of a 100% stake in Škoda Transportation.

The filing does not disclose the proposed price of the acquisition and no legally-binding transaction documents have been signed.

The two companies are already working together in the Chinese market for light rail vehicles, but the acquisition would give CRRC a significant presence in the European locomotive, rolling stock, and trolleybus markets.

Škoda Transportation generated revenues of Koruna 18.3bn ($US 718m) and a Koruna 588m net profit in 2015. The Czech company exports 54% of its production.