Alstom to Buy Bombardier Train Unit for Up to $6.7 Billion (2)

French train maker Alstom SA agreed to buy the rail unit of Bombardier Inc. for as much as 6.2 billion euros ($6.7 billion) to almost double in size, as the Canadian company offloads assets following a costly expansion in aerospace.

Alstom, based in Saint-Ouen, near Paris, will pay as little as 5.8 billion euros in the cash-and stock transaction outlined in a memorandum of understanding, according to a statement Monday. The acquisition is likely to add to earnings per share within two years and generate as much as 400 million euros in annual savings for Alstom within five years.

Combining ...