Bombardier Welcomes the European Commission Approval of
the Acquisition of Adtranz
MONTREAL, QUEBEC--APRIL 3, 2001 - 10:48 EDT
The European Commission today approved the
acquisition of DaimlerChrysler subsidiary Adtranz by Bombardier.
The transaction is now expected to be completed by May 1st, 2001.
"We are pleased with the decision of the Commission" said Robert
E. Brown, Bombardier President and Chief Executive Officer." The
combination of Bombardier Transportation and Adtranz will rank the
new entity as the global industry leader in all activities related
to rail vehicles, with 37,000 employees, annual revenues in excess
of Cdn$8 billion and a backlog of Cdn$22 billion", added Mr.
Brown.
Bombardier committed to the European Commission the following
undertakings:
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* Bombardier agreed to sell its shares of Elin of 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;
* Bombardier committed to cooperate with Kiepe of Dusseldorf,
Germany, in relation to traction equipment needed for specific
tramway cars for a period of five years. In addition, Kiepe will
provide some installation work for electrical systems to
Bombardier Transportation for a period of three years;
* Bombardier also agreed to the sale of Adtranz shares in the
Stadler Pankow joint venture based in Berlin, Germany, to the
majority shareholder. Bombardier further agreed to provide a
certain level of work to Stadler for a period of four years.
As well, for the European Union territory, Bombardier agreed to
divest by way of licences, the Regioshuttle RS1 and Variotram
products to Stadler Rail AG.
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These undertakings which have been made to alleviate concerns
expressed by the European Commission do not have a material impact
on the strategic value of the acquisition.
Bombardier Inc., a diversified manufacturing and service company,
is a world leading manufacturer of business jets, regional
aircraft, rail transportation equipment and motorized recreational
products. It is also a provider of financial services and asset
management. The Corporation employs 58,000 people in 12 countries
in North America, Europe and Asia, and more than 90% of its
revenues are generated outside Canada. Bombardier's revenues for
its fiscal year ended Jan. 31, 2001 totalled $16.1 billion. |
