Adtranz takeover completed
BOMBARDIER completed its acquisition of DaimlerChrysler Rail Systems GmbH (Adtranz) on May 1, following the approval by the European Commission's competition authorities (RG 5.01 p349) of the sale and purchase agreement with DaimlerChrysler AG announced last August. The purchase was completed for a cash consideration of C$1·1bn (k790m), subject to equity adjustments.
Bombardier Inc President & CEO Robert E Brown emphasised in a press conference at the former Adtranz headquarters in Berlin that 'rail transportation equipment is a core business, now accounting for nearly 40% of our revenues'. Heralding the disappearance of the Adtranz name, he confirmed that 'we will continue to carry this business forward worldwide under the banner of Bombardier Transportation'.
Pierre Lortie, who took over as President & Chief Operating Officer of Bombardier Transportation last December, said the merged business will retain a European headquarters in Berlin, although the main offices will be in Montreal. Operations will be structured into seven divisions: three for rolling stock in the Americas, Asia/Pacific and Europe, and four global divisions for Propulsion & Controls, Transit Systems, Services, and Signalling.
- In line with the EU ruling, Bombardier has sold its 26% stake in Elin EBG Traction to VA Tech Elin EBG. The two firms have also agreed to enter into 'a technology-based partnership'.