Alstom closes sale of N.American signalling business to Knorr-Bremse (updated)

Knorr Bremse AG

02/09/2024 08:47

(Adds background from paragraph 3)
       Sept 2 (Reuters) - French train maker Alstom  ALSO.PA 
said on Monday it had completed the sale of its North American
conventional signalling business to Knorr-Bremse  KBX.DE  for
$690 million.
    "Closing of the sale completes the execution of the
company's 2 billion euro ($2.2 billion) deleveraging plan,"
Alstom said.
    It had announced the sale in April as part of its plan to
reduce debt by 2 billion euros. It further outlined the plan in
May, including a $1 billion rights issue supported by its main
shareholders.
    Alstom is the world's second biggest train maker after
China's state-owned CRRC and has contracts on its order books
from Britain for its HS2 high-speed railway and for the largest
train tender in Danish rail history.
    Its cash problems are partly due to inheriting problem
contracts after its 2021 acquisition of Bombardier's  BBDb.TO 
rail business.
($1 = 0.9043 euros)

 (Reporting by Alban Kacher in Gdansk; Editing by Louise Heavens
and Milla Nissi)
 ((alban.kacher@thomsonreuters.com))