French rail giant Alstom has confirmed it is in talks about a possible takeover of Bombardier Transportation, which has its UK manufacturing site in Derby.
It comes after rumours emerged last week that the firm was poised to make a move for Bombardier’s rail division as the Canadian-based group looks to reduce its sizeable debts.
This morning, Alstom released a short statement confirming that talks were taking place.
It said: “Alstom confirms being in discussions with Bombardier regarding a possible acquisition of Bombardier Transportation by Alstom.
“Discussions are on-going. No final decision has been made. Alstom will inform the public of any material developments in this respect.”
Bombardier’s rail business is headquartered in Berlin, while its UK factory, in Litchurch Lane, Derby, is Britain’s largest train-making site.
The Litchurch Lane site is currently busy delivering a number of key orders.
In November, the company announced a recruitment drive for 400 extra staff to help it deliver hundreds of new carriages for Greater Anglia, South Western Railway and West Midlands Trains.
The company is also involved in a joint venture with Japanese train-maker Hitachi, which is bidding for a £2.75 billion contract to build trains for HS2.
According to some reports, Bombardier’s rail business is valued at around $7 billion.
Bombardier has so far declined to comment.
It is not the first time that Bombardier’s rail business has been linked with a possible takeover.
Back in 2017, rumours emerged that Bombardier was in talks with Germany’s Siemens about a possible merger.
Alstom has previously attempted to link-up with a rival train-maker. Last year, a planned tie-up between Alstom and Siemens collapsed due to European regulatory concerns.
If the deal had been allowed to go ahead, it would have created the largest train-making business in Europe.
European Union competition regulators blocked the Alstom-Siemens deal, fearing the tie-up would hurt competition and lead to higher prices for consumers.
