Alstom has sought arbitration against Bombardier Transportation in connection with its acquisition

The lawsuit is directed against Bombardier Inc. and in connection with a violation of certain provisions of the contract of sale agreement dated September 16, 2020said Alstom in a brief statement.

Bombardier has legitimate reasons to defend himself against Alstom’s claim and intends to do so with full force.reacted to the Canadian group, who said it had also intend to challenge some adjustments to the sale price already became lower than previous estimates.

Bombardier mentioned that during the sale of disagreements between the parties regarding certain arrangementswhich indicates that he intended to challenge them.

The arbitration procedure can take several yearsaccording to the Canadian group.

Conflict during acquisition

Alstom got a discount to buy the rail activities of the struggling Canadian conglomerate, which was finally acquired at 5.5 billion euros (C $ 7.5 billion) on January 29, 2021, against 5.8 to 6.2 billion euros. euro (7.9 to 8.4 B $ CAD) advanced a year earlier.

The French group believes that many of the contracts entered into by Bombardier Transportation before the operation are likely to generate substantial losses. Management has spent nearly 1.1 billion euros (C $ 1.5 million) on provisions for the risks associated with these contracts.

Its CEO Henri Poupart-Lafarge also warned markets that it would take three years to melt the less-profitable former competitor, which angered investors.

Because the arbitration proceedings are confidential, Alstom will not make any further comments during this proceeding.said the railroad manufacturer on Tuesday. Bombardier is subject to confidentiality obligationsadded the Canadian group.

Bombardier is set to publish its first quarter results on May 5 and Alstom for its staggered fiscal year of 2021/22 on May 11.