THE French train-builder Alstom has confirmed this morning that it is holding discussions about a possible acquisition of Canadian-based Bombardier Transportation, which has a number of sites in Britain including the Litchurch Lane works in Derby.
Alstom has made only a brief statement, but it does suggest that an outright purchase is contemplated, rather than a merger.
The statement adds that ‘discussions are on-going. No final decision has been made.’
Bombardier has been struggling with its aviation division although rail, including rolling stock and signalling, has been doing better. However, the company recently revealed that it had made a charge of $350 million against profits because of problems with three train-building contracts, including the late-arriving Aventras for London Overground.
Bombardier shares fell by 37 per cent in mid-January after the company had warned that its 2019 profits would be lower because of the problems with the train contracts. It also said it might have to write down the value of a plane partnership with Airbus.