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Alstom has Purchased Bombardier Transportation (Rail Division)

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Alstom Buys Bombardier Transportation for Seven Billion Euros (US$7 Billion - CDN$10 Billion)

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The entire Bombardier railway business is to be in the hands of the French. The deal is scheduled to be officially made on Thursday.

Düsseldorf According to information from industrial circles, the French railway technology manufacturer Alstom buys the entire railway business from Bombardier . The transaction is expected to be announced on Thursday morning.

Alstom will take over the worldwide railway business of the Canadians, whose headquarters are in Berlin, for seven billion euros.

https://www.fliegerfaust.com/alstom-buys-bombardier-2645131713.html

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Perhaps the rail division might benefit from better management. The news stories (in North America) about problems with Bombardier's rail business, late deliveries and dissatisfaction with product quality, have been frequent in recent years.

Frankly any supplier as incompetent as Bombardier is supposed to go out of business.

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4 minutes ago, DavidW said:

Frankly any supplier as incompetent as Bombardier is supposed to go out of business.

Then there would be no rail manufacturers.

 

Dan

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The announcement has been done, that is true.


There seem to be a lot of unknowns as yet, however. For instance, will the European regulators allow this merger to go through, especially on the heels of the failed merger of Siemens and Alstom (nevermind the earlier one between Bombardier and Siemens)? Does this include Bombardier's lucrative railway maintenance and operations division?

 

Dan

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Personally, I'm sad to see this. Yes, Bombardier had issues, but that doesn't make them all that incompetent. A huge portion of trains in North American and even Worldwide are Bombardier products, including the good part of the Vancouver SkyTrain and parts of NYC's subway.

This is just happening as the management at Bombardier tries to make a cash grab and get out of there - that's why we've seen all their commercial aircraft and now their trains get sold off. Really sad if you ask me.

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The Bombardier-Siemens merger didn't happen in the same context as today.  Back then it didn't look like Bombardier was at risk of going out of business so the net effect of that merger would have clearly been fewer competitors in the market.  Today the context is a bit different, with Bombardier risking financial ruin in a few years and not really any more assets to sell to avoid it the probability is there would be less competition whether the EU allowed the merger or not.  I'd bet the railway maintenance and operations is the big carrot for Alstom.  Bombardier seems like it's been selling off the best pieces first, analysts have pegged that as more profitable than business jets which seems to be about the last big piece.

 

6 minutes ago, Zortan said:

Personally, I'm sad to see this. Yes, Bombardier had issues, but that doesn't make them all that incompetent. A huge portion of trains in North American and even Worldwide are Bombardier products, including the good part of the Vancouver SkyTrain and parts of NYC's subway.

This is just happening as the management at Bombardier tries to make a cash grab and get out of there - that's why we've seen all their commercial aircraft and now their trains get sold off. Really sad if you ask me.

Well, they've had trouble delivering to NYC, just like Toronto and elsewhere.  I actually don't think it's management trying to make a cash grab, I think it's management trying to save the company but doing so in a way that cannibalizes the best long term revenue potential.  That I would describe as desperate and incompetent.  Just like the everything around the C-Series/A220.  If it was a normal publicly traded company where shareholders truly had control the management team would have been ousted long ago. 

I really liked the C-Series program but was turned off investing in the company because of incompetent management and no evidence that anything would change.

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10 hours ago, dbdb said:

 

I really liked the C-Series program but was turned off investing in the company because of incompetent management and no evidence that anything would change.

Boeing really screwed them over with the C Series. 

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