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Exclusive: Alstom to win EU antitrust okay for Bombardier deal - sources

Published 07/27/2020, 02:01 PM
Updated 07/27/2020, 06:10 PM
© Reuters. FILE PHOTO: A logo of Alstom is seen at the Alstom's plant in Semeac near Tarbes
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By Foo Yun Chee

BRUSSELS (Reuters) - Alstom (PA:ALSO) is set to gain EU antitrust approval to buy Bombardier (OTC:BDRBF) Inc's rail business, people familiar with the matter said on Monday, a deal which will make the French rail maker the world's second largest behind Chinese leader CRRC Corp.

Alstom earlier this month offered to sell a French rail factory, its regional train unit Coradia Polyvalent, and a Bombardier commuter trains division and the related production facilities at its Hennigsdorf site in Germany.

The French TGV high-speed train maker also proposed providing access to some products within Bombardier's train control systems and signalling units to rivals.

The concessions came after the European Commission voiced concerns about Alstom's greater market clout after the deal.

Alstom subsequently improved the concession on access to the Canadian company's train control systems and signalling units but did not have to sell more assets following feedback to the Commission from rivals and customers, the people said.

The Commission, which is scheduled to decide on the deal by July 31, declined to comment. Alstom and Bombardier also declined to comment.

© Reuters. FILE PHOTO: A worker stands in the doorway of a train at the Bombardier plant in Derby

Last year, EU regulators blocked Alstom's attempt to merge rail assets with Siemens AG (OTC:SIEGY) after they refused to offer more concessions.

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