Cofece approves purchase of Bombardier Transportation by Alstom
The Federal Commission for Economic Competition (Cofece) approved the acquisition of Bombardier Transportation by Alstom, including subsidiaries in Mexico.
In order to accelerate the deleveraging of its balance sheet, Bombardier recently entered into a transformation transaction to sell its rail business to Alstom SA based on an enterprise value of $ 8.4 billion (€ 7.15 billion).
Under the agreement, Bombardier would receive net proceeds of approximately $ 4 billion, including 585 million (€ 500 million) in the form of Alstom shares, which it intends to direct towards debt repayment under the most debt reduction strategies. efficient.
On May 6, Alstom S.A. (Alstom), Bornbardier Transportation México, S.A. de C.V. (Bornbardier México) and Caisse de dépot et pleasurenent du Québec (CDPQ, and together with Alstom and Bornbardier México, the Initial Notifiers) notified the Commission of their intention to carry out a concentration (Notification Document), in accordance with the provisions of article 90 of the LFCE, through the Electronic Procedures System of the Federal Economic Competition Commission (SITEC). The Notice of Notification was considered registered on the day of its presentation by issuing the «electronic acknowledgment of receipt».
On May 6, 2020, Alstom S.A., Bombardier Transportation México, S.A. de C.V. (Bornbardier México) and Caisse de dépot et pleasurenent du Québec (CDPQ, and together with Alstom and Bornbardier México, the Initial Notifiers) notified Cofece of their intention to carry out a concentration.
Bombardier
The Commission is in charge of the prevention of concentrations whose object or effect is to diminish, damage or impede competition and free competition. Likewise, it is empowered to challenge and sanction those concentrations and legal acts derived from them, whose object or effect is to diminish, damage or impede competition and free competition, in the production, distribution and commercialization of goods and services in the Mexican Republic.
The commercial activities of the mentioned companies are:
- Alstom: rail transport, in particular transport solutions (from high-speed and long-distance trains to subways, trams and electric buses), personalized services (maintenance and modernization), offers for passengers and infrastructures, digital mobility and signage solutions;
- Bombardier Transportation: rail solutions, in particular trains, subsystems, signaling, services and complete turnkey transport systems.
