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Rail News Home Passenger Rail

4/3/2001



Rail News: Passenger Rail

European Commission gives Bombardier/Adtranz combo green light


The European Commission (UC) April 3 approved Bombardier Inc.’s acquisition of DaimlerChrysler subsidiary Adtranz.


"We are pleased with the decision of the Commission," said Robert Brown, Bombardier president and chief executive officer, in a prepared statement. "The combination of Bombardier Transportation and Adtranz will rank the new entity as the global industry leader in all activities related to rail vehicles."


The Commission’s blessing does come with some strings attached, however, designed to ease UC-raised concerns.


Bombardier agreed to sell its shares of Vienna, Austria-based Elin to the majority shareholder and enter a cooperative agreement related to traction equipment for a specific tramway car model.


The manufacturer also agreed to cooperate with Dusseldorf, Germany-based Kiepe in relation to traction equipment for specific tramway car models for five years. Kiepe will provide Bombardier with some electrical system installation work for three years.


And Bombardier agreed to sell to the majority shareholder Adtranz’ shares in the Berlin-based Stadler Pankow joint venture, and to provide a certain level of work to Stadler for four years. And for the European Union territory, Bombardier agreed to divest to Stadler Rail AG by way of licenses the Regioshuttle RSI and Variotram products.


Having passed this final hurdle, Bombardier expects to complete the deal by May 1.


Contact Progressive Railroading editorial staff.

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