Second only to CRRC, Alstom of France completed th

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Second only to CRRC! Alstom of France has completed the acquisition of Bombardier's railway business unit in Canada. Alstom of France (Alstom) announced at its official on January 29 that it has completed the acquisition of Bombardier transport in Canada. Alstom said that Bombardier employees joined Alstom from January 29. After the merger, the operating revenue of the new company will reach 15.7 billion euros, and the order amount will reach 71.1 billion euros. The company will have 75000 employees in 70 countries around the world

so far, Alstom has surpassed Siemens in Germany and become the world's second largest rail transit equipment manufacturer after CRRC. Alstom will have a complete product line of railway vehicle equipment. In terms of rolling stock, it will completely cover all vehicles from light rail to high-speed trains

Alstom said that Alstom and Bombardier are complementary. At present, Alstom has established a good customer base in France, Italy, Spain, India, Southeast Asia, North Africa and Brazil; Bombardier has a strong customer base in strategic markets such as the UK, Germany, northern Europe, China and North America. The new company will have commercial influence in all regions, especially in Europe and North America, with a market share of about 75%

Alstom emphasized that it had brought seven joint ventures in China through the merger of Bombardier. With these diversified business scope strategies, the new company can obtain a deeper market scope and be closer to customers

Henry Poupard Lafarge, chairman and CEO of Alstom (behind h's low price purchase is that after-sales service cannot be fully guaranteed). Enri Poupard Lafarge said that the new company after the merger will be a global leader in smart 13, who can meet the experimental requirements of the national standard gb/t229 (2) 007 "metal Charpy Notch Impact Test Method" and can provide rail transit equipment. He said that the world needs a profound environmental and social transformation more than ever in order to cope with the great challenges of urbanization, equal opportunities for economic development and climate change. Transportation is the core of this transformation, and Alstom and Bombardier will promote this transformation

as for the goal of the new company, Alstom said that in the next four to five years, the new company will generate a cost synergy of 400million euros and restore Bombardier's profit margin to the standard level

Alstom also said that despite the epidemic of COVID-19, the global railway market is still accelerating its growth in urbanization, public investment strategies, and the global transformation of green and digital transportation systems. Alstom predicts that by 2025, the compound annual growth rate of the railway manufacturing market will reach 2.3%

in terms of equity and governance, Alstom confirmed that cdpq, a Canadian fund, has become the main shareholder of Alstom and owns 17.5% of Alstom's shares. Previously, cdpq held 32.5% of Bombardier transportation. Alstom Americas headquarters will be located in Montreal, Quebec, Canada

on February 17, 2020, Alstom first announced that it was discussing the possibility of acquisition with Bombardier and would acquire 100% of Bombardier's shares at a price between 5.8 billion euros (about 43.860 billion yuan) and 6.2 billion euros (about 46.885 billion yuan). The transaction was mainly completed in cash, Some of them are paid with new Alstom shares (for details, see "Alstom plans to acquire Bombardier's railway business with 6.2 billion euros to be approved by the antimonopoly authority" in China business daily on February 18, 2020)

in July 2020, the EU anti competition authority officially approved the acquisition of Alstom and Bombardier; In September, Alstom announced that it would formally acquire Bombardier's railway department according to the revised price terms, with a total value of 5.3 billion euros; In December, Alstom and Bombardier announced that they had obtained all regulatory approvals required for the acquisition project and were about to complete the acquisition

in China, Bombardier has a very deep cooperation with CRRC, and it is the enterprise with the widest scope of cooperation with China among international rail vehicle equipment suppliers. At present, there are 6 joint ventures and 7 wholly-owned enterprises, including two joint ventures with CRRC, CRRC Puzhen Bombardier Transportation System Co., Ltd. and Qingdao Sifang Bombardier railway transportation equipment Co., Ltd. (hereinafter referred to as BST). Among them, BST is one of the four companies with high-speed EMU production qualifications in China. In September 2016, CRRC and Bombardier signed a strategic cooperation agreement to carry out long-term cooperation in market development, international production capacity cooperation and capital fields

Bombardier announced on January 13 that BST received an order from China National Railway Group Co., Ltd. (hereinafter referred to as "China National Railway Group") for 16 cr400af multiple units for testing materials, with a total order amount of about 297million yuan (about US $46million or EUR 38million), The delivery of the train will be completed by the end of June 2021 (see "China business" for details. On January 15, 2021, "China Canada joint venture Sifang Bombardier won the Fuxing No. 1.9 billion order in 2020, and the market share decreased")

earlier, Bombardier announced on November 20, 2020 that China Railway Group signed a purchase contract with BST for 14 cr300af trains, with a total contract price of about 1.6 billion yuan. In other words, in 2020, BST completed a total of 1.897 billion yuan of contracts with China Railway Group, accounting for about 6.24% of the total amount of high-speed EMU combinations of China Railway Group in the whole year

from the perspective of revenue scale of rail transit business, the merger of Alstom and Bombardier will significantly narrow the volume gap with CRRC. Previously, Alstom and Bombardier ranked third and fifth in the global rail transit industry respectively. The revenue and net profit before interest and tax of rail transit business of Alstom and Bombardier in 2018 were 8.1 billion euros and 410 million euros, 8.9 billion dollars (about 7.8 billion euros) and 770 million dollars (about 650million euros) respectively

the first, second and fourth places are CRRC (about 19.8 billion euros), Siemens (8.8 billion euros) and Ge (about 8 billion euros). After the merger, the rail transit revenue of new Alstom will reach 15.9 billion euros, significantly narrowing the gap with CRRC, ranking second in the world, and will open the gap with the second tier

according to the prediction of sciverkehr, a German consulting company, the compound growth rate of the global rail transit equipment market will maintain a growth rate of 3% from 2021 to 2023, and the scale will reach 125 in 2023. Guangdong has developed a new material for soil remediation, and the pollution of lead and cadmium is expected to be controlled by 0 billion euros. In the context of the slowing growth of the industry, mergers and integration have become the choice of global rail transit equipment enterprises

Bombardier sought to merge with Siemens from 2016 to 2017 and moved its rail transit business headquarters to Berlin, but the plan failed due to Siemens' withdrawal. In 2017, Siemens and ALSTOM launched merger negotiations. On September 26 of that year, Siemens and ALSTOM signed a memorandum of understanding and announced the merger of equals

however, in February 2019, the European Commission rejected the plan on the grounds that the merged enterprise had a monopoly position. The European Commission said that although both Siemens and ALSTOM emphasized that the merger was to deal with CRRC, the European Commission believed that CRRC had very limited influence in the European market. In February 2019, GE and Wabtec completed the merger

Bombardier, headquartered in Montreal, Quebec, Canada, is an international transportation equipment manufacturer. Its main products include regional airplanes, business jets, railway and high-speed railway locomotives, urban rail transit equipment, etc. Bombardier's financial situation has continued to deteriorate in recent years. According to the preliminary financial data released by Bombardier on January 16, 2020, the pre tax profit of its rail transit business in the fourth quarter of 2019 was -230million US dollars. The main reasons for the loss were the decline of Bombardier's train quality and delivery delay over the years

Alstom is a global rail transit equipment supplier and once a world leading power infrastructure equipment manufacturer. Headquartered in Paris, France, Alstom has always been a symbol of French high technology. In 1978, Alstom TGV ultra high speed train was born. On April 3, 2007, it set the world record for the highest speed of rail trains of 574.8 km/h, and has remained so far

in the China Railway High-speed Train harmony EMU, CRH5 is the introduction of ALSTOM Technology, CRH1 is the introduction of Bombardier technology, and CRH3 is the introduction of Siemens technology

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