CTLE specialises in the modernisation of trains. Alstom is buying the shares from CTE and IDC, which will remain shareholders.
Once the agreement is finalised, and upon approval by anti-trust authorities, Alstom will launch an integration project. This will enable CTLE to offer a complete rail portfolio including infrastructure, signalling, trains and components.
CTLE is based in the region of Ekurhuleni in Nigel, east of Johannesburg, and employs 450 people. It has a 80,000m2 manufacturing facility and generated a turnover of more than €15 million in 2014.
This acquisition is designed to strengthen Alstom’s presence in the region and allow the creation of a stronger industrial and commercial base. It also allows Alstom to offer a broader range of rail products and solutions.
"We are delighted to sign this agreement with our South African partners,” said Gian-Luca Erbacci, senior vice president of Alstom Middle-East and Africa. “This is a win-win partnership that will strengthen the rail sector in South Africa, boost its economy and, in the long term, address the needs of other countries in the Southern African region.”
Alstom is already present in South Africa through its local joint venture Gibela and is involved in one of the country’s biggest ever transport projects through the supply of 600 X’Trapolis Mega commuter trains to the national rail company, Passenger Rail Agency of South Africa (PRASA).