Alstom tie-up with Thales or Bombardier unlikely (translated)
08 FEB 2019
French Economy Minister Bruno Le Maire said that the government would review options for a consolidation of Alstom [EPA:ALO], the listed French rail transportation specialist, French daily Les Echos reported.
The report cited Daniel Desjardins, vice-chairman of Alstom listed competitor Bombardier [TSE:BBD.B] of Canada, as saying that he was happy about the rejection by the European Commission of the merger project between Alstom and Germany’s Siemens [ETR:SIE]. The report claimed that Bombardier is not keen on taking Siemens’ place and tying up with Alstom.
Another party that could ally with Alstom is the transport division of France’s Thales [EPA:HO]. Thales Chairman Patrice Caine denied he was planning to sell Thales piecemeal or taking part in the consolidation of the sector. The report also claimed that a combination with Alstom would likely raise competition issues in the rail signalling market, for which Thales claims to be the worldwide leader. Thales’ transport division generated sales of EUR 1.76bn in 2017.
Alstom is 26% owned by the French State and 26% by privately-owned industrial group Dassault, the report noted.