French transport conglomerate Alstom has bought Canadian train and plane manufacturer Bombardier's rail division for about 7.45 billion euros.
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The two companies have a presence in Ballarat - Alstom operates the century-old Ballarat Workshops on Creswick Road, building metropolitan trains, while Bombardier has a rail maintenance facility in Ballarat East.
Bombardier designed and built the V/Line VLocity carriages currently in use on the network, as well as Melbourne trams.
The deal was rumoured last week after Bombardier sold its commercial aviation division.
READ MORE: Is Alstom eyeing Bombardier's rail division?
The companies confirmed the deal in press releases on Tuesday.
Alstom chairman and chief executive Henri Poupart-Lafarge said in a statement the acquisition was a "unique opportunity".
"This acquisition will improve our global reach and our ability to respond to the ever-increasing need for sustainable mobility," he said.
"Bombardier Transportation will bring to Alstom complementary geographical presence and industrial footprint in growing markets, as well as additional technological platforms."
Bombardier's president and chief executive Alain Bellemare said in a statement the company would focus on its business aviation division.
"We are confident that the sale of our rail business to Alstom is the right action for all stakeholders," he said.
An extraordinary general meeting is expected to be held before October, with the deal expected to be closed in the first half of 2021.
Alstom is currently negotiating with the Victorian government over the next-generation X'Trapolis 2.0 metropolitan train project.
It is not yet known what effect the transaction will have on business in Australia.
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