Advertisement
Singapore markets closed

  • Straits Times Index

    3,176.51
    -11.15 (-0.35%)
     

  • Nikkei

    37,068.35
    -1,011.35 (-2.66%)
     

  • Hang Seng

    16,224.14
    -161.73 (-0.99%)
     

  • FTSE 100

    7,895.85
    +18.80 (+0.24%)
     

  • Bitcoin USD

    63,585.64
    +789.53 (+1.26%)
     

  • CMC Crypto 200

    1,373.67
    +61.04 (+4.65%)
     

  • S&P 500

    4,967.23
    -43.89 (-0.88%)
     

  • Dow

    37,986.40
    +211.02 (+0.56%)
     

  • Nasdaq

    15,282.01
    -319.49 (-2.05%)
     

  • Gold

    2,406.70
    +8.70 (+0.36%)
     

  • Crude Oil

    83.24
    +0.51 (+0.62%)
     

  • 10-Yr Bond

    4.6150
    -0.0320 (-0.69%)
     

  • FTSE Bursa Malaysia

    1,547.57
    +2.81 (+0.18%)
     

  • Jakarta Composite Index

    7,087.32
    -79.50 (-1.11%)
     

  • PSE Index

    6,443.00
    -80.19 (-1.23%)
     

Bombardier agrees $8.2 billion deal to sell rail unit to Alstom

Reuters
·1-min read
FILE PHOTO: The Bombardier FV-Dosto double-deck train "Ville de Geneve" of Swiss railway operator SBB is seen at the central station in Zurich

PARIS/MONTREAL (Reuters) - Canada's Bombardier said on Monday it had agreed to sell its rail division to France's Alstom for an enterprise value of $8.2 billion, as it focuses purely on business aviation and pays down debt.

That price tag includes equity plus debt. The deal will be done majoritarily in cash, with a chunk paid in new Alstom shares, Bombardier and Alstom confirmed in separate statements.

Bombardier said it would be receiving net proceeds of between $4.2 and $4.5 billion, once it accounts for the portion that will go to Canadian pension fund manager Caisse de dépôt et placement du Québec, a 30% shareholder in the rail unit.

Caisse will become the biggest shareholder in Alstom following the deal, which is expected to close in the first half of 2021, Bombardier added.

The memorandum of understanding between Bombardier and Alstom was approved by both companies' boards.

($1 = 0.9228 euros)

(Reporting by Dominique Vidalon, Sarah White and Allison Lampert)