Alstom has filed a request for arbitration before the International Chamber of Commerce regarding its acquisition of Bombardier Transportation.
The French rolling stock manufacturer claims that Bombardier Inc. breaches certain contractual provisions of the sale and purchase agreement dated September 16, 2020.
Alstom did not disclose details on the alleged breaches as the “arbitration proceedings are confidential” and will not make further comments during the legal proceeding.
One day before the public announcement made by the French company, Bombardier Inc. announced that it has received a notice from Alstom requesting arbitration before the International Chamber of Commerce pursuant to the agreement relating to the sale by Bombardier of its Transportation business on January 29, 2021. In its request for arbitration, Alstom is alleging that Bombardier is in breach of certain contractual provisions.
Bombardier says that it “has good grounds to defend itself against Alstom’s claim and intends to do so vigorously”.
As noted in its press release dated January 29, 2021, Bombardier also intends to challenge certain purchase price adjustments which resulted in proceeds from the transaction being lower than initially estimated.
Arbitration proceedings could last several years. Given that Bombardier is subject to confidentiality obligations, it will abstain from commenting further on these proceedings unless required by applicable law.
On January 29, 2021, Alstom announced the completion of Bombardier Transportation acquisition. In September 2020, Alstom signed with Bombardier Inc and CDPQ the purchase agreement at a revised price, lower than initially estimated.