Bombardier agrees $8.2 billion deal to sell rail unit to Alstom
PARIS/MONTREAL (Reuters) - Canada's Bombardier () said on Monday it had agreed to sell its rail division to France's Alstom () for an enterprise value of $8.2 billion (£6.31 billion), as it focuses purely on business aviation and pays down debt.
That price tag includes equity plus debt. The deal will be done majoritarily in cash, with a chunk paid in new Alstom shares, Bombardier and Alstom confirmed in separate statements.
Bombardier said it would be receiving net proceeds of between $4.2 and $4.5 billion, once it accounts for the portion that will go to Canadian pension fund manager Caisse de dépôt et placement du Québec, a 30% shareholder in the rail unit.
Caisse will become the biggest shareholder in Alstom following the deal, which is expected to close in the first half of 2021, Bombardier added.
The memorandum of understanding between Bombardier and Alstom was approved by both companies' boards.
More News in canada
Bombardier Inc. has sold its rail-building unit to French train giant Alstom SA, marking its exit from the rail business. On Monday, Alstom announced it had secured a deal with Bombardier
French transportation giant Alstom has confirmed it is in talks with Bombardier about the possibility of acquiring its transportation division, but the company says no final decision has been made. Alstom posted a statement on
French rail giant Alstom confirmed it is in talks about possibly acquiring Bombardier Transportation, which includes its train division. The company issued a four-line statement early Monday after the Wall Street Journal reported on the weekend
Bombardier Inc. is negotiating a preliminary deal to sell its transportation division to Paris-based Alstom SA. The deal, first reported in the Wall Street Journal on Sunday, could yield $7 billion US for the