CNR, CSR make merger moves, Bombardier rail unit readies to join them
2015/5/12 16:17:06 Push：
CHINESE train makers China CNR Corp and CSR Corp stopped trading last week in preparation for a merger process expected to create the world's biggest rail conglomerate by revenue, reports Reuters.
The state-backed firms have a combined market capitalisation of US$113 billion, said in stock market filings the halt would last until the merger was completed, but did not specify a date.
Late last year, they announced merger plans and said they would rename the combined company China Railway Rolling Stock Corp, which analysts said would compete on a global scale with the likes of Siemens AG.
Last month, Reuters that CNR and CSR have been in talks with Montreal's Bombardier on buying a controlling stake in its railway unit.
In preparation, Bombardier outlined plans to list a minority stake in its rail unit on as it reported a quarterly profit that topped market expectations.
The initial public offering is expected to take place in the fourth quarter and the main listing is likely to be in Germany, where its rail business is headquartered.
Reuters reported in April that Bombardier was looking to raise cash from the rail unit Bombardier Transportation as it grappled with cost overruns in its aircraft business. It acquired a large chunk of the rail business through its acquisition of Adtranz from DaimlerChrysler back in 2001.
Last Thursday, Bombardier also signaled that its long-delayed CSeries jet could go into service even later than previously forecast. The company still expects the plane to be certified by the end of 2015, but said entry into service would be in the first half of 2016.
The state-backed firms have a combined market capitalisation of US$113 billion, said in stock market filings the halt would last until the merger was completed, but did not specify a date.
Late last year, they announced merger plans and said they would rename the combined company China Railway Rolling Stock Corp, which analysts said would compete on a global scale with the likes of Siemens AG.
Last month, Reuters that CNR and CSR have been in talks with Montreal's Bombardier on buying a controlling stake in its railway unit.
In preparation, Bombardier outlined plans to list a minority stake in its rail unit on as it reported a quarterly profit that topped market expectations.
The initial public offering is expected to take place in the fourth quarter and the main listing is likely to be in Germany, where its rail business is headquartered.
Reuters reported in April that Bombardier was looking to raise cash from the rail unit Bombardier Transportation as it grappled with cost overruns in its aircraft business. It acquired a large chunk of the rail business through its acquisition of Adtranz from DaimlerChrysler back in 2001.
Last Thursday, Bombardier also signaled that its long-delayed CSeries jet could go into service even later than previously forecast. The company still expects the plane to be certified by the end of 2015, but said entry into service would be in the first half of 2016.
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