Bombardier acquisition of Adtranz approved
The European Commission (EC) approved the acquisition of DaimlerChrysler’s subsidiary, Adtranz, by Bombardier Transportation.
The European Commission (EC) approved the acquisition of DaimlerChrysler’s subsidiary, Adtranz, by Bombardier Transportation. The transaction is expected to be complete by May 1. Together, the new entity will employ 37,000 and have annual revenues in excess of $5 billion. Under the deal, Bombardier committed to the EC the following: • It agrees to sell its shares of Elin in Vienna, Austria, to the current majority shareholder and to enter into a cooperation agreement related to traction equipment for a specific model of tramway car. • It will cooperate with Kiepe of Dusseldorf, Germany, in relation to traction equipment needed for specific tramway cars for five years. • It will sell Adtranz shares in the Stadler Pankow joint venture based in Berlin to the majority stakeholder. It will also provide a certain level of work to Stadler for a period of four years. Those concessions were made to alleviate concerns expressed by the EC.
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