Shares in French train manufacturer Alstom fell just over 3 percent on the Paris Stock Exchange after the company agreed to buy Canadian Bombardier's train manufacturing business for up to 6.2 billion euros (approximately 65 billion kronor).

The deal must be approved by competition authorities to be completed.

The acquisition would create a new giant in the train market with a total turnover of around 17 billion euros per year and a market share in the regional train market in Europe of 40–60 percent, according to French union sources.

Competitor Siemens' market share in the same segment is 10–20 percent.

Alstom's and Bombardier's combined market share in signalling systems and high-speed trains is significantly lower.

Alstom CEO Henri Poupart-Lafarge said on Monday, when the deal was announced, that the acquisition will not affect jobs and that the competition authority will give the green light to the deal.

Source: TT