Alstom-Bombardier Deal to Complete in January

This is big news as Bombardier is the sole supplier of the proprietary, linear induction motor powered Movia Automatic Light Metro system used on the Expo and Millennium Lines. Alstom may or may not continue the production of the now stale dated Movia Light Metro and give notice to its customers that they will wind down production.

As Alstom will own the patents, the cost for MALM vehicles and spare parts may increase significantly.

The aged Movia family of light metro is now more expensive when compared to more modern transit mode, including light rail and only seven of the LIM powered light metros have been built since the late 70’s; with only three seriously used for urban transport.

So unpopular is MALM that its marketing name has been changed at least six times, over the past 40 or more years it has been on the market.

Vancouver is now the sole customer for MALM and if Alstom abandons production future planning for SkyTrain extensions will not be possible.

Does TransLink have a plan B? Do they really care?

2021 maybe the trigger that puts the carnival ride, called SkyTrain, into the history books.

 

Alstom-Bombardier deal to complete in January

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INTERNATIONAL: Alstom and Bombardier announced on December 1 that they had received ‘all necessary regulatory approvals’ required to complete the sale of Bombardier Transportation to Alstom.

As a result the two companies expect the transaction to close on January 29 2021.

Alstom announced its intention to acquire 100% of Bombardier Transportation from Bombardier Inc and Caisse de Dépôt et Placement du Québec on February 17.

After Alstom offered a number of product and factory divestments to ensure competition in key market segments, the deal was approved by the European Commission on July 31.

Signing of the formal sale and purchase agreement was announced on September 16, when Alstom said the terms had been ‘adapted to the current situation’, reducing the anticipated price range to between €5·5bn and €5·9bn.

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Under the deal, the acquisition is to be funded through a mix of cash and new Alstom shares. Around €2bn is being raised on the market, with CDPQ contributing €2·6bn to €2·8bn through a reserved capital increase. The Canadian investor currently holds 32·5% of Bombardier Transportation, and would become the largest shareholder in the enlarged Alstom group with a stake of approximately 18%.

Comments

One Response to “Alstom-Bombardier Deal to Complete in January”
  1. Major Hoople says:

    Alstom has shape in discounting non conforming transportation systems, they did it with TVR.

    Alstom may do your TransLink a favour by abandoning SkyTrain production as a little shock treatment will make the powers to be see the light so to speak.

    We continue to shake our heads at news in Vancouver and the love affair with SkyTrain. We think that very soon the government will designate it a historical monument.

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