PARIS (AP) -- French engineering giant Alstom SA said Tuesday it has agreed to acquire a 25 percent stake in Russian train maker Transmashholding for an undisclosed total amount.
At a news conference in Paris, Alstom Chief Executive Patrick Kron said the French train and power plant builder will make a downpayment of euro75 million ($98.95 million), with the rest of the price to be determined based on TMH's performance over the period 2008-2012.
Kron called the agreement "a major event for Alstom and for French-Russian cooperation."
Russian rail operator RZD buys 1,000 locomotives per year, and the partnership with Alstom is aimed at fulfilling that demand, said Andrei Bokanov, chairman of TMH.
Russia has the world's largest rail system, with 85,000 km (53,000 miles) of rail lines and 1.5 billion passengers per year.