France’s Alstom is in talks to buy the train business of Canada’s Bombardier in a potential US$7 billion deal that marks the latest attempt by Western rail companies to bulk up in the face of Chinese competition, reported the Wall Street Journal.
Alstom, the maker of TGV bullet trains that speed between French cities such as Paris and Nice, and several rivals are trying to build scale to compete with China’s CRRC, the world’s largest train maker.
The French firm was blocked last year by European regulators from merging with Germany’s Siemens, while a previous flirtation between Siemens and debt-laden Bombardier to combine some train businesses fell apart in 2017.
“Alstom confirms being in discussions with Bombardier regarding a possible acquisition of Bombardier Transportation … No final decision has been made,” Alstom said in a statement on Monday, February 17.
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