February 02, 2016

EU approves sale of Bombardier Transportation stake

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THE sale of a 30% stake in Bombardier Transportation took an important step forward on February 1, when the European Commission (EC) approved the acquisition of joint control over the newly-created holding company Bombardier Transportation (UK) Investment Limited (BTUK) by Bombardier and Caisse de Dépôt et Placement du Québec (CDPQ).

The EC said it concluded that the proposed acquisition, which was announced on November 19, would not raise any competition concerns as the two companies' activities do not overlap and CDPQ controls no other companies which would have a significant position as a customer or supplier of BTUK.

CDPQ is paying $C 1.5bn ($US 1.1bn) for a 30% stake in BTUK in a deal which values the company at $C 5bn.

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