Bombardier will sell its rail division for Alstom

the Canadian Bombardier agreed to sell its rail division to the French Alstom.

“Bombardier has signed a Memorandum of understanding with Alstom SA and Caisse de depot et placement du Quebec (la Caisse) on the sale of its Transportation business for Alstom, — stated in the message of the canadian company. — Under the deal, Bombardier and la Caisse sell its Alstom stake in Bombardier Transportation in the amount of 8.2 billion dollars.”

This price includes stock and debt. The deal will be paid mostly in cash and partly new shares by Alstom.

Bombardier will receive net revenue of $ 4.2- $ 4.5 billion.

Caisse will become the largest shareholder of Alstom after the deal, which is expected to be closed in the first half of 2021.