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Business deals

Alstom strikes at China rail dominance with Bombardier buy

$8.2bn deal aims to counter Belt and Road advance into Africa

An Alstom train undergoes maintenance by French state-owned railway company SNCF at a site in Sotteville-les-Rouen, France.   © Reuters

PARIS -- French train maker Alstom is set to take over a railway unit of Canada's Bombardier in an $8.2 billion deal intended to give it the scale to better compete with China's CRRC, the global market leader.

The memorandum of understanding announced Monday marries Alstom's strength in high-speed rail with Bombardier's competitive advantage in subways and urban transit. The new Alstom will be the world's No. 2 rolling-stock manufacturer, with revenue of around 15.5 billion euros ($16.8 billion).

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