Bombardier and Alstom think of merging railway branches

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Canadian aircraft and train manufacturer Bombardier is talking to French company Alstom about a merger of the two companies’ train branches. That is what Bloomberg press agency writes based on insiders. This also involves preliminary discussions that may not lead to a deal at all. Moreover, a cooperation can still encounter competition concerns.

Major train manufacturers have been trying for some time to make a stand against the increasing competition from China. Earlier, Bombardier talked to Siemens once to merge the train branches, but the Germans decided to merge with Alstom. However, that merger was stopped by the European Commission.

Bombardier is in heavy weather and has already sold a number of business units such as the branch that makes propeller aircraft and the branch that makes regional airliners. For the smaller commercial aircraft, the company entered into a partnership with Airbus, which sells such aircraft as the A220. Bombardier is also considering the possibility of getting rid of his share in that collaboration.

In addition to the cooperation with Airbus and the train branch, Bombardier also has a part that makes private aircraft under the brand names Learjet, Challenger and Global.

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Oliver I. Kjeldsen

Oliver I. Kjeldsen has a corporate finance and extensive expertise in company audit. He grants us amazing insights on taxation, international affairs and friendly advice on nearly any topic of interest. His email is [email protected]

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