Alstom Raises Stake in Russia's Transmashholding to 33%

By Inti Landauro

PARIS--Alstom SA (ALO.FR), the French engineering group best known for its high-speed trains, said Tuesday it raised its stake in Russian rolling-stock manufacturer Transmashholding to 33%.

Alstom said it paid $54 million to acquire a larger stake in its Russian partner, in which it already held 25%.

The recent slump of the ruble makes the rolling-stock manufacturer more competitive on foreign markets and could be a good base for exports, the company's Chief Executive Patrick Kron said this year. Mr. Kron singled out Kazakhstan, where the Alstom-Transmashholding partnership is active.

Alstom's management has said it would use part of the proceeds of this year's sale of its power equipment division to General Electric Co. (GE) to strengthen its train business through acquisitions. The French company divested the power turbine business as a result of a global slump in demand for new power plants and rising competition from larger rivals.

Write to Inti Landauro at [e-mail]

(END) Dow Jones Newswires

December 29, 2015 10:29 ET (15:29 GMT)

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