Bombardier Transportation's subsidiary BT Signaling has signed an agreement to purchase a 25% stake in Russian Railways (RZD) subsidiary United Electrical Engineering Plants (Elteza).
BT Signaling will increase its stake in Elteza to just under 50% following further approval, with RZD retaining the majority stake.
As part of the modernisation strategy, the agreement will allow Elteza to develop new technologies and manufacture new products, including Bombardier's EBI Lock 950 computer-based interlocking technology.
The transaction is expected to be completed during the first quarter of 2011 following approval from governmental authorities.
Elteza is a provider of rail signalling equipment and automatic and remote train control systems.
