December 1, 2015 / 7:09 PM / 2 years ago

Alstom could eye tie-up with Bombardier: France's Macron

PARIS (Reuters) - French train maker Alstom ALSO.PA should use the proceeds of the sale of its energy unit to make acquisitions abroad and could consider a tie-up with Canadian rival Bombardier BBDb.TO, French Economy Minister Emmanuel Macron said on Tuesday.

The logo of Alstom is pictured on a building during an inaugural visit of the Alstom offshore wind turbine plants in Montoir-de-Bretagne, near Saint-Nazaire, western France, December 2, 2014. REUTERS/Stephane Mahe

“Alstom’s challenge is to grow,” Macron told senators. “The reduction of its debt should help it acquire competitors abroad,” the minister said.

Asked by a senator whether Alstom could be interested in a tie-up with Bombardier, Macron said competition was rife with Chinese rivals and that a tie-up with the Canadian group, which makes passenger railcars and locomotives, could be necessary.

Quebec’s public pension fund manager said last month it would buy a 30 percent stake in Bombardier’s rail business for $1.5 billion to provide a bigger cash cushion for its troubled planemaking unit.

Reporting by Michel Rose and Yann Le Guernigou; editing by Susan Thomas

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