China’s CRRC says no plans to buy Bombardier’s rail assets

Beijing: Chinese train maker CRRC Corp Ltd said on Monday it had no intention to buy the rail business of Canada’s Bombardier Inc, responding to recent local media reports that said it planned to do so.

In a statement to the stock exchange, the train maker cited media reports published last week saying a recent share purchase by subsidiary CSR (Hong Kong) Co Ltd in Hong Kong-based China Properties Investment Holdings Ltd was done to pave the way for a deal with Bombardier.

One newspaper, the Securities Daily, in its report on the matter on Thursday, also cited unidentified sources as saying that controlling offshore-registered China Properties Investment would make it easier for CRRC to buy overseas assets.

“At present, neither (CRRC) nor its subsidiaries have any plans to acquire rail assets from Bombardier,” the firm said in the Monday statement.

CRRC said on June 19 the unit would buy 6.5 billion new shares in China Properties Investment to become a majority shareholder.

CRRC, the world’s biggest rail conglomerate in terms of sales, was formed earlier this month through the merger of China’s top two train makers, China CNR and CSR Corp.

Reuters reported in April that China CNR and CSR Corp had been in discussions with Bombardier about possibly buying a controlling stake in the Canadian firm’s railway unit, though talks were unable to move forward until the merger’s completion.