Knorr-Bremse takes over Alstom division: focus on signaling technology

Knorr-Bremse takes over Alstom division: focus on signaling technology

Brake manufacturer Knorr-Bremse recently announced a significant acquisition in the area of ​​railway signaling technology for train traffic. This acquisition includes the acquisition of the US conventional railway signaling technology business from the French rolling stock manufacturer Alstom. Knorr-Bremse plans to expand its own rail business and strengthen its position in this market. The takeover was viewed positively by one stock trader because, although it was not cost-effective, it will lead to an improvement in Knorr-Bremse's margins.

Analysts such as JPMorgan's Akash Gupta praise Knorr-Bremse's acquisition strategy, which targets higher-margin businesses and strengthens the company's digital capabilities. The takeover of the Alstom business should be approved quickly, as Knorr-Bremse has not previously been active in this market. The deal is valued at €630 million and Knorr-Bremse plans to complete it in the summer, using both existing cash and debt for financing.

Through the takeover, Knorr-Bremse will become one of the leading companies in the field of train control, train control and signaling technology. The acquisition will enable the company to increase its addressable market volume in the rail sector by up to 20 billion euros in the medium term. Knorr-Bremse shareholders reacted positively to the news, while Alstom shares benefited in the short term but subsequently lost value.

The takeover will have far-reaching effects for both Knorr-Bremse and Alstom. As Knorr-Bremse expands its rail business, Alstom will use the transaction to avoid greater dilution as a result of the sale. Analysts are optimistic about the future of both companies and expect positive developments in connection with the takeover. The Knorr-Bremse share price has already recorded a significant increase in price, which is strengthening investors' confidence in the company.