Alstom completes purchase of 25% stake in Transmashholding
RUSSIA: Alstom completed the purchase of a 25% plus one share stake in Russia's largest locomotive and rolling stock manufacturer on May 27.
The deal was closed at the Amsterdam head office of Transmashholding's parent company The Breakers Investments BV following clearance by Russia's Federal Antimonopoly Service and the commission on foreign investments in strategic sectors. Approval had already been obtained from EU, Ukrainian and Kazakh regulatory authorities.
Alstom has paid an initial US$75m, and will make further payments calculated from TMH's financial performance in 2008-11. Alstom is to hold two seats on the board of TMH, in which Russian Railways also holds a stake.
'This signing culminates several years of partnership and intense collaboration between our two companies', said Alstom Chairman & CEO Patrick Kron. 'Russia represents a key market for Alstom in our three businesses, and we are very proud that Transmashholding and its shareholders chose Alstom to help them modernize the Russian rail sector.'
In 2008 discussions for Bombardier to take a stake in TMH were abandoned and the Russian firm signed a memorandum of understanding with Alstom, subject to due diligence. An agreement for a strategic partnership to develop modern rolling stock for the 1 520 mm gauge market was signed in March 2009, with terms for joint activities and management firmed up during President Dmitry Medvedev's state visit to France a year later.
Alstom and TMH are jointly developing EP20 passenger and 2ES5 freight electric locomotives through the TRTrans joint venture in Novocherkassk. In June 2010 RZD placed a €1bn order for 200 dual-voltage EP20 locomotives, and this was followed in October by a €1·3bn order to supply Kazakhstan's KTZ with 200 KZ8A freight and 95 KZ4A passenger locomotives.
A joint company dedicated to the manufacturing of rolling stock components is to be established.