French Alstom SA is seeking to purchase Bombardier's train unit Bombardier Transportation, the company confirmed in a statement on Monday.
Alstom said discussions with the Canadian company are ongoing, but stressed that a decision is yet to be made. The deal is expected to be worth around $7 billion, including debt, according to media reports.
Troubled Bombardier has been selling off its units to a number of companies including Mitsubishi, Airbus and Textron. Meanwhile, Siemens was interested in a merger with Alstom, but the deal was stopped by the European Commission amid competition fears in the high-speed railway industry.
