Bombardier agrees $8.2 billion deal to sell rail unit to French Alstom

Canada’s Bombardier said on Monday it had agreed to sell its rail division to France’s Alstom for an enterprise value of $8.2 billion, as it focuses purely on business aviation and pays down debt.

That price tag includes equity plus debt. The deal will be done majoritarily in cash, with a chunk paid in new Alstom shares, Bombardier and Alstom confirmed in separate statements.

Bombardier said it would be receiving net proceeds of between $4.2 and $4.5 billion, once it accounts for the portion that will go to Canadian pension fund manager Caisse de depôt et placement du Quebec, a 30% shareholder in the rail unit.

Caisse will become the biggest shareholder in Alstom following the deal, which is expected to close in the first half of 2021, Bombardier added.