Bombardier closes sale of Transportation business after “disagreements” over deal

Bombardier Transportation, which has a major base in Derby, has been sold to Alstom in a deal which will net the train maker around £2.6bn, including approximately £440m in Alstom shares.

The long-running saga of the sale has been finally brought to a close after rumbling on for most of last year.

However, Bombardier says it intends to challenge the adjustments sought by Alstom in the deal after months of disagreements. Proceeds from the transaction were lower than previous estimates as a result of Bombardier Transportation’s lower-than-expected cash generation in the fourth quarter due in part to unfavorable market conditions.

“With this transaction now complete, Bombardier begins an exciting new chapter focused exclusively on designing, building and servicing the world’s best business jets,” said Éric Martel, president and chief executive officer, Bombardier.

He added: “With an unmatched product portfolio, a world class customer services network and incredibly talented employees, we have a strong foundation to build upon as we use the proceeds from the transaction to begin addressing our balance sheet challenges through debt paydown.”