Alstom offers French factory sale to clinch Bombardier deal

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France's TGV high-speed train maker Alstom on Thursday offered to sell a French rail factory and make other concessions to win European Commission approval for its planned purchase of Bombardier Inc's transportation business.

Alstom said it would sell its Reichshoffen factory in France, confirming a report by Reuters on Wednesday. The site in Eastern France has around 800 employees and produces mostly regional trains.

French unions, which are due to be updated on the concessions on Thursday, were still hoping to keep the site, a source familiar with the matter said on Wednesday. The EU is due to decide whether or not to pursue a deeper enquiry on July 16, following its preliminary review of the deal. Alstom said other concessions included providing access to some products within Bombardier’s train control systems and signalling units - one of the areas where the combined companies would have a large market share.Reporting by Maya Nikolaeva and Sarah White; Editing by Edmund Blair and Jane Merriman

 

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