Alstom in Talks With Skoda Transportation to Sell Plant: Echos

Want the lowdown on European markets? In your inbox before the open, every day.Sign up here.

Alstom SA, the maker of the French high-speed TGV train, will open exclusive talks withSkoda Transportation to sell its plant in Reichshoffen, North Eastern France, to the Czech company, the daily Les Echosreported, without saying where it got the information.

The sale is being imposed by the European Commission to complete a deal with Canada’sBombardier 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.

Read more:Alstom Signals Bombardier Rail Arm Losses to Affect Takeover

The companies havesaid 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.

Source: Read Full Article