(Reuters) – French train manufacturer Alstom (EPA:) on Monday announced the completion of the sale of its North American conventional signaling business to Knorr-Bremse for $690 million.
“The closing of the sale completes the company’s €2 billion ($2.2 billion) debt reduction plan,” Alstom said.
It announced the sale in April as part of its plan to reduce debt by 2 billion euros. It further outlined the plan in May, including a $1 billion rights issue backed by its major shareholders.
Alstom is the world’s second-largest train manufacturer after Chinese state-owned company CRRC. The company has orders from the UK for the HS2 high-speed rail line and the largest train tender in Danish railway history.
The company’s liquidity problems are partly due to inheriting problematic contracts following its 2021 acquisition of Bombardier’s (OTC:) rail business.
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