Bombardier Transportation acquires stake in Russian Railways subsidiary

Written by jrood

Following the signing of a share purchase agreement in Moscow on December 13, 2010, Bombardier has confirmed that BT Signaling B.V. purchased a stake in the signaling equipment manufacturer United Electrical Engineering Plants, known as Elteza. BT Signaling B.V. purchased a 25 percent stake in Elteza, a subsidiary of Russian Railways (RZD). Subject to further approval, BT Signaling B.V. could increase its stake to up to 50 percent. RZD will remain the majority shareholder. Elteza is Russia's largest signaling equipment producer with more than 3,000 employees across seven manufacturing sites. The company focuses on the design, development and production of rail signaling equipment and automatic and remote train control systems which have been delivered in Russia, the Commonwealth of Independent States (CIS) and the Baltic states. The new partnership will be one of the first successful examples of the privatization of a Russian Railways' subsidiary and part of the modernization strategy of RZD.

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