Bombardier Transportation gets stake in RZD subsidiary
Written by William C. Vantuono, Editor-in-ChiefBombardier Transportation Wednesday said subsidiary BT Signaling B.V. has purchased a stake in the signaling equipment manufacturer United Electrical Engineering Plants, known as Elteza.
BT Signaling B.V. purchased a 25% stake in Elteza, a subsidiary of Russian Railways (RZD). Subject to further approval, BT Signaling B.V. could increase its stake to up to nearly 50%. RZD will remain the majority shareholder.
The purchase follows the signing of a share purchase agreement in Moscow last December.
Bombardier says Elteza is Russia’s largest signallng 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, Bombardier says.
