Rolling stock manufacturer Alstom has completed the acquisition of Bombardier Transportation.

Leveraging on its Alstom in Motion strategy and its strong operational fundamentals and financial trajectory, Alstom, integrating Bombardier Transportation, will strengthen its leadership in the growing sustainable mobility market by reaching a critical size in all geographies and integrating further solutions and assets to better serve its customers worldwide, the company said in a statement on January 29.

The enlarged group has a combined pro-forma revenue of around €15.7-billion and a €71.1-billion combined backlog.

It employs 75 000 people worldwide in 70 countries, and has research and development capabilities and a complete portfolio of products and solutions.

The group will have commercial reach in all geographies thanks to the complementarities of the two companies.

While the Alstom group already had a well-established customer base in France, Italy, Spain, India, South East Asia, North Africa and Brazil, Bombardier Transportation will bring strong customer proximity in strategic markets such as the UK, Germany, the Nordics, China, and North America.

The group will have, in particular, very strong capabilities in Europe and North America, which represent about 75% of the original-equipment manufacturer accessible market.

As previously announced, the headquarters of Alstom of the Americas will be based in Montréal, Québec – leading all operations in the region, as well as establishing a centre of excellence for design and engineering.

The group will offer mobility operators and network providers products and solutions throughout the entire rail value chain.

The group will have access to further strategic industrial capacities with a competitive industrial footprint across both mature markets, such as Western Europe, North America and Australia, and growing markets, including Eastern Europe, Mexico and India. 

The employees of Bombardier Transportation join the Alstom group as from January 29.

With rail being the lowest carbon dioxide-emissive motorised mode of transportation, the group is more than ever focused on its ambition to decarbonise mobility, it said.

Alstom confirmed its objective to generate €400-million in cost synergies on a yearly run rate basis by the fourth to fifth year of the merger and to restore Bombardier Transportation’s margin to a standard level in the medium term.  

The reference price was established at €5.5-billion.