China Railway Rolling Stock Corporation (CRRC) is negotiating the purchase of a 100% stake in Škoda Transportation, reports Lidovky publication. The acquisition deal builds on a previous long-term cooperation agreement between the two companies, maintained for several years through various projects.
CRRC is currently assessing the financial situation of the Czech rolling stock manufacturer and the details of a potential commercial deal are expected to be announced in the following weeks.
The acquisition of Škoda Transportation will enable CRRC to enter the Europen rolling stock market. Last month, CRRC’s largest subsidiary, CRRC Zhuzhou Electric Locomotive (CRRC ZELC) has opened its headquarters in Vienna. The newly created company in Austria will offer consultancy services, marketing support and warranty services, will organise procurement and carry out projects in different European countries.
For 2015, Škoda Transportation has reported record consolidated sales of CZK 18.3 billion, 11% increase year-on-year, but its net profit fell by a quarter to CZK 588 million.