Alstom says the commitments, which have been made in coordination with Bombardier Transportation and Caisse de Depot et Placement du Québec (CDPQ), following initial discussions with the EC over its potential concerns.

The EC had set a deadline of July 9 for Alstom to respond to its concerns over the acquisition and said it will announce its decision by July 16.

The proposed commitments include:

  • transfer of Bombardier Transportation’s involvement in the V300 Zefiro high-speed train, which is currently produced in Italy in partnership with Hitachi Rail Europe, to another party
  • sale of Alstom’s Coradia Polyvalent EMU and bi-mode train platforms and its Reichshoffen factory in France
  • sale of Bombardier’s Talent 3 EMU platform and dedicated production facilities located within the Hennigsdorf factory in Germany, and
  • provide access to certain interfaces and products for some of Bombardier Transportation’s signalling on-board units and train control management systems (TCMS).

“The divestitures will comply with all applicable social processes and consultations with employee representatives’ bodies,” Alstom says. Online meetings with trade union officials will be held on July 9 to brief them on the proposals.

Alstom says the proposals are subject to the EC’s approval. However, the company remains confident that the deal will go through as it says that closure of the acquisition of Bombardier Transportation remains on track for the first half of 2021.

“Bombardier fully supports the planned acquisition of Bombardier Transportation by Alstom,” Bombardier said on July 9. “The transaction will be subject to clearance from relevant regulatory authorities, including the European Commission, each of which have their own procedural timelines.”

Alstom announced its plan to acquire 100% of Bombardier Transportation’s shares for between €5.8 and €6.2bn in February. Under the deal, CDPQ, which currently holds a 32.5% stake in Bombardier Transportation, will become Alstom’s largest shareholder with around 18% of capital. CDPQ will reinvest about €2bn in Alstom plus an additional €700m. Bouygues will remain a shareholder in Alstom with around 10% of capital. If approved, the acquisition will consolidate Alstom’s position as the world’s second largest railway equipment manufacturer by revenue, behind China’s CRRC.