Rail news: Alstom acquires Bombardier Transportation

16 Feb 2021
Investment, Railway
Estimated reading time : 2 minutes
Rail news: Alstom acquires Bombardier Transportation
16 Feb 2021
Investment, Railway
Estimated reading time : 2 minutes

Alstom buys Bombardier Transportation, creating a new global leader in mobility.

On 29 January, the French rail group, Alstom, finalised the acquisition of the rail operations of the Canadian Bombardier Group, for €5.5 billion.

Alstom-Bombardier – a combined powerhouse

The merger brings the group unprecedented strength:

  • 2nd largest rail group worldwide
  • a 150,000 strong fleet – the most extensive installed base globally
  • 2nd biggest signalling product line in terms of revenue
  • technical capabilities and commercial capacities in strategic markets
  • unparalleled R&D capabilities
    • 17,500 engineering and R&D talents
    • 10,000 patents
    • and 70% of the Group’s R&D carried out in France

This power boost accelerates the group towards its ambition: to be the global innovative player for sustainable and smart mobility.

Responding to growing demand

Between economic recovery and the development of sustainable mobility, market demand for railway equipment should see an annual average growth of 2.35% by 2025*.

Growth which the Alstom group can now face with confidence with its 75,000 employees worldwide in 70 countries.

The group currently has a combined backlog of €71.1 billion.

* UNIFE Market Study 2020, central scenario (V-shape)

Facing up to the competition

As the world’s new #2 in the rail sector, Alstom should now be able to hold its own against the Chinese leader in the sector, CRRC.

Integrating Bombardier Transportation, Alstom will have the most complete rail portfolio, ranging from light rail to very high-speed trains.

With the two companies’ combined locations and access to markets, the group will enjoy extensive global reach.

The group will also have very strong capabilities in Europe and North America, which represent approximately 75% of the OEM (Original Equipment Manufacturer) rail market.

Alstom and Bombardier in Hauts-de-France

Alstom and Bombardier both have a presence in Hauts-de-France – France’s leading rail region – alongside Siemens, Millet and Faiveley.

Crespin production site is one of the largest railway plants in the country.

Fast facts on the Hauts-de-France rail industry:

  • 40% of all rail output in France
  • 10,000 rail industry jobs
  • €1 billion in sales
  • + 200 suppliers and subcontractors

Find out more before you invest. Discover everything that Hauts-de-France has to offer your rail investment project.

Sources: Alstom, France 24

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