Alstom in talks with Skoda transportation to sell plant
Sale is being imposed byEuropean Commission to complete a deal with Canada's Bombardier
Paris: Alstom SA, the maker of the French high-speed TGV train, will open exclusive talks with Skoda Transportation to sell its plant in Reichshoffen, North Eastern France, to the Czech company, the daily Les Echos reported, without saying where it got the information.
The sale is being imposed by the European Commission to complete a deal with Canada's Bombardier Inc.'s rail unit. Alstom selected Skoda Transportation over Spain's CAF, because it's potentially a more ambitious rival, according to Les Echos. The French train maker declined to comment to the newspaper.
The companies have said that the purchase of Bombardier's transport business will be completed in the first quarter of next year. The French train manufacturer would almost double its size with the cash-and-stock purchase of Bombardier's rail unit.