The move would create the world's second-largest train manufacturer and a potential competitor to China's state-owned rail manufacturing behemoth. However, EU competition regulators must first give the green light.
Image: picture-alliance/dpa/P. Pleul
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French transport manufacturer Alstom agreed Monday to buy the rail division of Bombardier, in a move that would create the world's second-largest train manufacturer.
Alstom, the manufacturer of France's high-speed TGV trains, offered to pay up to €6.2 billion euros ($6.8 billion) in a mix of cash and shares for the cash-strapped Canadian firm's rail division, according to a memorandum of understanding signed between the firms.
The acquisition must now be approved by EU competition regulators.
European train manufacturers have been trying to build scale to compete with China's state-owned China Railway Construction Corporation (CRCC), the world's largest train manufacturer.
Last year, Alstom tried to merge its rail manufacturing with that of German industrial giant Siemens, but Brussels put the brakes on the deal, ruling that a merged company would have dominated the European market at the expense of consumers.
This time around, Alstom Chief Executive Henri Poupart-Lafarge is optimistic, and said Monday that the Bombardier deal was different than that failed Siemens merger and that regulatory hurdles were "not a huge issue."
"If there are some issues, they will much easier to solve than the one we had with Siemens," he told Reuters news agency.
French Finance Minister Bruno Le Maire is due to meet with EU's competition commissioner Margrethe Vestager on Tuesday to discuss the deal.
France was critical of the EU's decision to block last year's merger attempt, and supports the potential Alstom-Bombardier merger.
"This deal will allow Alstom to prepare for the future, against the backdrop of increasingly intense international competition," Le Maire said.
German labor union rejects merger
Germany's largest labor union, IG Metall, condemned the potential merger in a press release, and said EU anti-trust regulators should evaluate the deal in the same manner as the attempted Alstom-Siemens merger.
Germany's rail company, Deutsche Bahn, is a major customer of both Alstom and Bombardier.
If the deal goes through, the metalworkers union said it would "not accept unilateral consolidation" at the expense of German workers.
10 things Germans generally know about trains
Tickets, reservations and train types: Here are 10 basic facts and insider tips about Deutsche Bahn trains, Germany's state railway.
Image: Deutsche Bahn AG
Did you get that?
There's a loudspeaker announcement while you're waiting for a train, but you barely distinguish a single word? The acoustics of any train station are generally bad, so instead of worrying too much about what you've missed, here's a German idiom for the unexceptional occasion: "Ich verstehe nur Bahnhof" — literally, "I only understand train station" — which means you didn't understand a thing.
Image: picture-alliance/dpa
Recognize different types of trains
Most preschool children know this: The Intercity-Express (ICE) trains are the high-speed stars of the German state railway, Deutsche Bahn. They reach up to 300 kph (186 mph). The Intercity (IC) trains are also white and red, but not quite as modern and fast, traveling at a maximum speed of 200 kph. If you're heading to a smaller town, the (often red) Regionalbahn (RB) is what you're looking for.
Image: picture-alliance/dpa/J. Woitas
Not all trains are on time
Despite the stereotypes about German efficiency, train punctuality has been declining, and complaining about how they're late all the time is a small talk topic that unites travelers throughout the country. DB claims that nearly 75 percent of its high-speed trains reached their destination within five minutes of their planned schedule in 2018.
Image: picture-alliance/dpa/F. Tschauner
You can't travel for free
A basic principle: Buy your ticket before boarding a train. However, if ever the ticket vending machine is out of order at your station of departure or you don't manage to obtain a ticket before getting on the train, on ICE or Intercity trains you can buy your ticket from the conductor once you're on board. On a RB, you'll be fined for fare evasion, aka "schwarzfahren" (literally: black riding).
Image: Deutsche Bahn AG/P. Castagnola
Travel with a group to save money
Groups of up to five people will find interesting deals for regional train tickets. In some cases, it's already cheaper for two people to buy one such ticket; each additional traveler on the same ticket further reduces the costs, which is why improvised groups of people heading to the same destination often find each other on the platform.
Image: picture-alliance/dpa/J. Kalaene
Bikes are a challenge
An increasing number of ICE trains have designated spaces for a limited number of bicycles. On other trains, from the Intercity to the regional ones, there are special wagons for bikes. You'll need an extra ticket to bring one along. Cycling is a popular activity in the summer, so expect a chaotic "first come, first served" struggle to squeeze yours in and out of a regional train on a weekend.
Image: DW/Elizabeth Grenier
Sorry, but that place is mine
A train ticket doesn't come with an allocated seat. Reservations are available at an extra cost on long-distance trains — and they can be overbooked. Indicators usually reveal if a seat has been reserved, but even Germans find "ggf. reserviert" (which means: "it could be reserved") confusing. In any case, the passenger with a reservation is sure to let you know if you're sitting in their place.
Image: Deutsche Bahn AG/O. Lang
Wait at the right spot
While tourists wildly run around looking for the wagon with their reservation once their ICE train comes in, seasoned German travelers are already standing next to the right door. They know there's a useful information system that associates a letter on the platform to the position where each carriage will stand.
Image: DW/Elizabeth Grenier
You don't need to be loud elsewhere either
There are different options when you make a reservation: Do you prefer an aisle seat, at a table or in a smaller compartment? Some areas are conceived for people who prefer it quiet. Avoid making phone calls in the "Ruhebereich," or quiet zone. And even in other areas, no one really wants to listen to you talk loudly on your phone.
Image: picture alliance/dpa/N. Schmidt
Get a special compartment for your children
Parents traveling with their children will find it easier to avoid the quiet zone altogether. On ICE trains, special family compartments are an interesting option — but they need to be booked ahead. Traveling without a reservation? Head to the "Family Zone." Children aged 5 and under travel for free, while those under 15 don't have to pay either, as long as they're accompanied by a paying adult.
Image: Deutsche Bahn AG/O. Oliver Lang
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DW business editor Daniel Winter said such a deal would create the second largest rail infrastructure company in the world.
"It's an effort to create challenger to China's CRRC, which is a behemoth of a train make. A combination of Alstom and Bombardier would get close, becoming the second biggest train maker in the world with 15.3 billion euros in sales in 2018, not quite as big as CRRC at nearly 21 billion euros, but much closer."
The deal would also help Bombardier cope with a falling share price and rising debt, Winter added.