ON APRIL 3 the European Commission approved the acquisition of DaimlerChrysler subsidiary Adtranz by Bombardier of Canada. The transaction is expected to be complete by May 1.
As part of the approval process Bombardier Transportation was required to meet several conditions set by the Commission. It must sell its 26·5% share of Austrian traction and electrical equipment supplier Elin to the current majority shareholder, and enter into a co-operation agreement regarding traction equipment for Cityrunner II trams. The Canadian company has also undertaken to co-operate with German firm Kiepe Elektrik in relation to tram traction equipment for five years, and Kiepe will provide Bombardier with electrical installation work for three years.
Adtranz’s shares in the Berlin-based Stadler Pankow joint venture will be sold to the majority shareholder, Stadler AG, and Bombardier will provide the plant with an agreed amount of work for four years. The Regioshuttle RS1 diesel railcar and Variotram business is to be licensed to Stadler Rail within the European Union.
In approving the deal, the European Commission warned that any further consolidation within the industry sector would need very close study.
Bombardier President & Chief Executive Officer Robert E Brown said that the combined organisation will have annual revenues of over C$8bn, an order backlog worth C$22bn, and 37000 employees.
- During March carriage production began at the Bombardier Sifang Power Transportation works in China’s Shandong Province. BSPT is a joint venture comprising Bombardier Transportation, Sifang Locomotive & Rolling Stock Works and Power Pacific Corp (RG 4.00 p242)