ALSTOM has confirmed it has filed a request for arbitration before the International Chamber of Commerce regarding its purchase of Bombardier Transportation on January 29 2021.

Alstom says the claim against Bombardier relates to the breach of certain contractual provisions of the sale and purchase agreement dated September 16 2020.

Bombardier announced on April 25 that it had received the arbitration notice from Alstom, but added it “has good grounds to defend itself against Alstom’s claim and intends to do so vigorously.”

Bombardier also reiterated its intention to challenge certain purchase price adjustments, which resulted in the purchase price of Bombardier Transportation being lower than initially estimated.

The arbitration proceedings could last several years.

Both Alstom and Bombardier said they would not make further comments during the legal proceedings.

Alstom’s €5.5bn acquisition of Bombardier Transportation cemented its position as the second largest rail manufacturer in the world after CRRC. The sale price was at the bottom of the €5.5-5.9bn range announced in September 2020 when Alstom and Bombardier signed a sale and purchase agreement, and lower than the €5.8-6.2bn range announced in February 2020.