French train maker Alstom said on Friday it had completed its previously announced purchase of Bombardier rail business, an acquisition that should make it the world’s No. 2 in its industry behind China’s CRRC.

Alstom, which cut its offer for Bombardier rail in September 2020, said the price for the deal was established at 5.5 billion euros ($6.7 billion), at the bottom of a range of 5.5 billion to 5.9 billion euros indicated previously.

At around 1220 GMT, Alstom’s shares were down 0.5%, faring less worse than France’s CAC 40 (-0.89%).

The combined group will have 15.7 billion euros in revenues with an order book of 71.1 billion euros and 75,000 employees in 70 countries.

Alstom, owned 9.7% by French conglomerate Bouygues, launched a 2 billion-euro capital increase to finance the Bombardier deal in December after it had secured European Union antitrust approval six months earlier.

The finalization of this Franco-Canadian deal comes on the heels of Canada’s Alimentation Couche-Tard dropping its approach to France’s Carrefour after the French government expressed its firm opposition to the deal.

Source: Reuters


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