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Alstom to buy Bombardier rail unit for $6.7 billion
Alstom to buy Bombardier rail unit for $6.7 billion
Acquisition and merger of companies is a long-term process, especially in case when big money is involved. According to analysts, it is better to properly consider every step when it comes to purchasing a company. Currently, France’s Alstom and Canada’s Bombardier, two leading railway manufacturers, are engaged in talks about the possible acquisition of Bombardier for $7 billion. Alstom, the maker of TGV bullet trains, announced on February 16 that it almost came to an agreement with the management of Bombardier to buy out its railway business. However, Alstom can face some difficulties in its attempt to unite the companies as one of its previous agreements has been rejected by regulatory authorities. Back in 2019, European regulators blocked the French railway manufacturer from merging with Germany’s Siemens. A potential deal with Bombardier can attract the attention of controlling authorities as well. However, experts believe that the chances to sign a deal are relatively high. According to analysts from Deutsche Bank, the purchase of Bombardier rail units can have a positive impact on Alstom’s revenue. The company’s earnings per share are expected to increase by 17 percent.

Published: 2020-02-21 12:31:37 UTC
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