The Globe and Mail reports in its Thursday edition that France's Alstom SA is proposing concessions to European regulators, including the sale of a French rail factory, in an effort to win early antitrust approval for its planned purchase of Bombardier's transportation unit. A Reuters dispatch to The Globe says that
Alstom's bid of up to 6.2 billion euros for Bombardier's rail unit was launched in February and the EU competition enforcer is likely to demand concessions to approve the deal.
Alstom unions are being summoned to an on-line meeting Thursday in which management will provide an update on discussions with the European Commission.
Alstom is seeking to create the world's No. 2 train maker to better compete with Chinese leader CRRC Corp. in its second attempt at a deal, after the European Commission blocked its planned merger with Siemens AG last year.
To secure regulatory approval, Alstom plans to offer a list of concessions, including asset sales in on-board signalling, high-speed trains and regional mainline trains.
Thursday is the deadline for concessions during the EU's preliminary review of the deal. Berlin-based Bombardier Transportation employs about 36,000 people and operates in 60 countries.
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