ALSTOM and FIAT have announced that ALSTOM will take a 51% stake in Fiat Ferroviaria, the Italian group’s rail transport equipment unit.
Fiat Ferroviaria has annual direct sales of approximately 375 million euros (US $350 million). It also has indirect sales of 110 million euros via its 50-50 joint venture with ALSTOM, West Coast Traincare in the U.K, which carries out the 1.8 billion euro services and maintenance contract with Virgin Trains for its West Coast Main Line fleet. Fiat Ferroviaria is also the world leader in tilting technology; its mainline intercity tilting trains have been sold in Italy, Finland, Israel, Spain, Germany and Switzerland.
"This acquisition, which seals many years of successful cooperation, will enable ALSTOM to benefit from Fiat Ferroviaria's excellent reputation on the Italian market and abroad, to complete its product range and know-how, and to reinforce its position as the world's leading supplier to the rail industry," said Michel Moreau, President of ALSTOM Transport.
The transaction is subject to customary regulatory approvals.
Fiat will now focus on its activities in the auto, truck, agricultural and construction equipment industries, the company said. For ALSTOM, it continues the aggressive progress to be the leading global specialist in energy and transport infrastructure, analysts said. Already this year, it has integrated Asea Brown Boveri’s half of an ALSTOM-ABB joint venture in the power markets, now part of ALSTOM Power.