The great liquidation of Bombardier continues while the French giant Alstom may announce as early as today that it completed the acquisition of the rail division of the flagship québec business in decline.
After weeks of rumors, Alstom would effectively hand over the transportation division of Bombardier to a little more than 9.3 billion dollars, reported the Wall Street Journal (WSJ) yesterday.
The Bombardier plant in La Pocatière, in the Bas-Saint-Laurent, built in particular the cars of the Montréal subway.
Sources of the Newspaper have argued that an announcement could take place as early as today to confirm the agreement between the two giants of the rail. The daily Liberation in France proceeded even just before the opening of the stock markets. This other sale of Bombardier would be in addition to those made in the last few years, where the jewel in the crown of québec has, in particular, sold its commercial aircraft such as the Q400, the CRJ and the old CSeries, which has become the A220 Airbus under the guidance of Alain Bellemare.
Despite this, the company was faced with a gigantic debt of around $ 12 billion. It became apparent recently that Bombardier was looking to divest itself of one of its last two divisions, that is, the transport (trains, metro, trams) or business aircraft (Global, Challenger, Learjet).
Last Thursday, Airbus, Bombardier and the government of Quebec announced that an agreement had occurred, for as the jewel in the crown withdraws completely from the program A220. By transferring its units, Bombardier has received approximately 785 million $ to Airbus, allowing it to mop up some of the debt.
The deal with Alstom will also have an impact on the wool socks Quebec. According to the WSJ, the Caisse de dépôt et placement du Québec (CDPQ), which holds 32.5 % of Bombardier Transportation, has agreed to sell his shares to Alstom in exchange for a stake in the French company.
Last week, the French media BFM Business, it was suggested that the CDPQ could become a shareholder about 10 % of the giant.
Called to respond, the Fund has indicated that it does not ” comment on never rumours “.
Bombardier Transportation employs around 1,000 people in Quebec, La Pocatière and Saint-Bruno-de-Montarville, in particular, in addition to the providers.
This acquisition by Alstom would create a gigantic entity to compete with the State enterprise ” railway of chinese CRRC. The european authorities should, however, consider that, before everything can go ahead.
In the future, Bombardier will be present only in the niche market of business aircraft. However, it is in this sector that the company has the largest number of workers in Québec, with more than 10 000.
-With the QMI Agency and Sylvain Larocque
Bombardier Transportation in six dates
- 1970 Bombardier acquires Lohnerwerke, Austria. This manufacturer of scooters and trams marks the entry of Bombardier in the rail sector.1974 Bombardier gets a huge contract for the production of 423 cars for the metro of Montreal, the famous MR-73, some of which are still in function. This is its first contract in the field of public transport.
- 2001 After a quarter-century of development and acquisitions, Bombardier put the hand on the German DaimlerChrysler Rail Systems GmbH. It allows him to become the world leader in the manufacture of trains and other trams.
- 2002 Bombardier moved the headquarters of its transport sector in Berlin, to be closer to its main market, Europe.
- 2010 After years of twists and turns, a consortium formed by Bombardier and Alstom finally gets a contract to replace the MR-73 subway of Montreal. The two partners provide a total of 54 trains formed of cars MPM-10.
- 2015 The Caisse injects US $ 1.5 billion in Bombardier Transportation, which allows him to hand over 30 % of the division. This announcement comes after Quebec had flown to the rescue of Bombardier by injecting US $ 1 billion into the CSeries.
The development of the CSeries, which has cost $ 10 billion to Bombardier, nearly led the company to bankruptcy. Bombardier has completely withdrawn from this project, last week, after having ceded control to Airbus. In the aftermath, the programs of regional aircraft Q400 (at Viking Air) and RTA (Mitsubishi Heavy Industries) have been sold.
- Over 3000 people are working on the A220 and the RTA in Mirabel.
Joseph-Armand Bombardier founded L’auto-Neige Bombardier Ltée in 1942. Bombardier later sold its division of recreational vehicles in 2003 to Bain Capital, the Bombardier family and the Caisse de dépôt et placement du Québec. Today, BRP generates annual revenues of $ 5.2 billion.
- BRP has 13 000 employees in 26 countries, including more than 2000 here.
Bombardier presents its new jet luxury Global 7500 as the key to its future. The industry of business aviation is, however, facing a problem of overcapacity, which leads many analysts to predict that manufacturers will have no choice but to merge.
- Bombardier Aviation employs more than 10,800 people here.
Bombardier Transportation-a few figures
- More than 40 000 employees in the world.
- Provider of equipment and services in more than 60 countries and 200 cities.
- Approximately US $ 10 billion in orders in 2019, a record.
- A book totalling $ 5.8 billion $ to the end of 2019.
- Gross revenues 8.27 billion US $ in 2019, down 7 % from 2018.