France’s TGV high-speed train maker Alstom on Thursday, July 9, offered to sell a French rail factory and make other concessions to win European Commission approval for its planned purchase of Bombardier’s transportation business, reported Reuters.
The commitments also included selling Alstom’s regional train unit Coradia Polyvalent and divesting a Bombardier commuter trains division and the related production facilities at its Hennigsdorf site in Germany.
Alstom’s bid in February of up to €6.2 billion (US$7 billion) for Montreal-based Bombardier’s rail business has faced scrutiny from EU antitrust authorities, which have been expected to demand concessions to approve the deal.
Alstom is offering more than it thinks is necessary in a bid to get the deal done, people familiar with the matter said.
Last year, EU regulators blocked Alstom’s attempt to merge rail assets with Siemens AG.
Full Content: Reuters