(MarketWatch) – Alstom SA said Monday that it has noted negative financial and operational performance developments at Bombardier Inc.’s rail unit released last week but still intends to go ahead with its takeover deal.
The French train maker said quarterly results pointed to “unexpected and negative developments” at the Bombardier division compared with the period before Feb. 17. when it announced plans to buy it.
Alstom will take the developments into account in upcoming discussions with the Canadian train and plane maker and update the market as needed, it said.
It continues to be “convinced of the strong strategic rationale for the acquisition of Bombardier Transportation and is confident in its ability to restore in the medium term the profitability and commercial performance of the business.”
Alstom’s takeover of Bombardier Transportation is expected to close in the first half of 2021.