Alstom has announded that it has signed a sale agreement with Bombardier Inc and Caisse de dépôt et placement du Québec (CDPQ) over the purchase of Bombardier Transportation.
The agreement terms have been changed regarding the current situation and due to this, an approx £273m (€300m) reduction in the price range has now been agreed with Bombardier Inc.
This reduction in price, therefore, means that the acquisition of Bombardier will now cost Alstom in the range of €5.5bn to €5.9bn (approx £5bn – £5.4bn).
In the UK, Alstom takes care of Avanti West Coast Class 390 Pendolinos amongst other projects, whilst Bombardier has a major train manufacturing plant in Derby.
Henri Poupart-Lafarge Chairman and CEO of Alstom said: “The acquisition of Bombardier Transportation represents a transformational change for Alstom. It will enable the Group to accelerate on its strategic roadmap and strengthen its leadership in the context of a dynamic market, at a time where sustainable transportation is at the heart of the global agenda.
“Bombardier Transportation will bring to Alstom complementary geographical presence to broaden Alstom’s commercial reach in key growth markets, strong product complementarities in rolling stock, strategic scale in services and signalling, industrial capacity in key countries, a leading portfolio offering and additional R&D capabilities to invest in green and smart innovation. Alstom will also welcome new talent and expertise, with the arrival of Bombardier Transportation employees.”
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Alstom who also built the South Western Railway (formerly South West Trains) Class 458 Junipers that were converted from Class 458/0 4-Car units with spare parts from the former Gatwick Express Class 460 Juniper. And converted the 4-Car Class 458/0 (458001-458030) to Class 458/5 5-Car Juniper units (458501-458536) used on the Windsor & Eton Riverside and Reading services. In which sadly they are to be replaced by the Class 701 Bombardier Aventra stocks that are coming into service either before the end of this year. Or in the new year (2021). As South Western Railway have ordered 60 Class 701/0 10-Car (701001-701060) and 30 Class 701/5 5-Car (701501-701530) Aventra units that will operate on DC 750v 3rd Rail.
With the prosperity of the 36 Class 458/5 Junipers to be sent for scrap. Or could be cascaded elsewhere such as Southern to inherit them to replace the Class 455 on the Southern suburban services (London Victoria & London Bridge-Caterham, Tattenham Corner, Epsom Downs, East Grinstead, Reigate and Sutton) and Class 313 “Coastway” used on the East Coastway Line, West Coastway Line, Seaford branch line, Littlehampton branch line and Bognor Regis branch line.