The European Commission has granted its conditional approval to the proposed takeover of Bombardier Transportation by Alstom.
However, the Commission’s approval for the transaction is conditional on actions being taken that were proposed by Alstom last month:
- A transfer of Bombardier Transportation’s contribution to the V300 Zefiro very high-speed train and an offer of IP licence to Hitachi for the train co-developed by Hitachi and Bombardier Transportation for use in future very high-speed tenders in the UK;
- The divestment of the Alstom Coradia Polyvalent and the Reichshoffen production site in France;
- The divestment of the Bombardier Talent 3 platform and dedicated production facilities located within the Hennigsdorf site in Germany;
- Providing access to certain interfaces and products for some of Bombardier Transportation’s Signalling on-board units and train control management systems (TCMS).
The various sales and transfers will have to comply with all applicable social processes and consultations with employee representatives’ bodies.
The European Commission’s approval is not the only one needed for the takeover, but it is a major step forward. However, the transaction still remains subject to further regulatory approvals in several other jurisdictions and customary closing conditions.
Closing of the takeover deal is still expected for the first half of 2021.